Three key news stories unfolding as the UK stock market opens. Check out our companies reporting diary for upcoming results from FTSE 350 and selected international stocks.
1. Coca Cola HBC expands into Africa, share buybacks suspended
London-listed Coca Cola HBC LON:CCH has this morning announced that it is to acquire 75% of Coca Cola Beverages Africa for $2.6bn. The move will be funded by a bridge finance facility as well as the issue of new share capital worth around 5% of the current market cap.
The deal is expected to be EPS accretive from the first full year following completion and expands the geographic diversification of the expanded group. Capital allocation frameworks remain unchanged but the share buyback programme will be cancelled with immediate effect. Separately the company reported a strong Q3 performance with consistent growth observed and reiterated its guidance for the full year.
2. Magnum demerger faces delay amidst US government shutdown
So the saying goes, “when America sneezes, the world catches a cold” and that’s been played out today – albeit in a political rather than economic fashion – with Unilever LON:ULVR announcing that the timetable for the demerger of the Magnum Ice Cream Company has been delayed.
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That’s off the back of the US government shut down which is impacting the SEC’s ability to admit the new company’s stock for trading on the New York Stock Exchange. This issue had already been flagged to investors at the start of the month.
3. Solid Q3 from SEGRO as rental income keeps rising
Commercial real estate operator SEGRO LON:SGRO issued a Q3 update this morning noting a strong performance with YTD new rent signings of £53m, against a FY24 figure of £64m. Occupancy and customer retention rates remain high, whilst the balance sheet is also well positioned to harness future growth opportunities with £1.7bn of cash and undrawn committed facilities in place.
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This article does not constitute investment advice. Do your own research or consult a professional advisor.
