Movers of Friday 14 May 2021

Francesca Morgan
Market Report
15:33, 14th May 2021

Sanne Group (SNN) shares ticked up 21.61% to 734p after the group rejects buyout offer

Shares in the asset management service provider soared on Friday after the group confirmed to investors that it had rejected a £1.35bn buyout offer from the UK private equity firm Cinven. In the proposal, shareholders were offered 830p per share, a 22% premium to its last closing price, as well as the option to receive the final dividend of 9.9p declared back in March 2021.

Cinven, which proposed the buyout offer to Sanne Group last week, said it is now considering all options and that it has until 11 June 2021 to make another offer or withdraw its interest.

SNN price chart

Velocity Composites (VEL) shares soar 25.00% to 25p as it secures contract extension

Shares in Velocity Composites jumped after it unveiled that it has signed a new three-year contract with an unnamed major Tier 1 aerostructures manufacturer based in Hampshire.  

The firm, which supplies advanced composite kitting solutions and material management services to the aerospace composites industry, said the contract is valid from 1 March 2021 until 31 August 2024 and expands upon Velocity’s long-standing relationship with the client. 

While the contract reflects a UK-based partnership, Velocity told investors that it hopes to further expand this relationship with its manufacturing sites “in Europe and internationally.” 

Velocity said it will continue to work alongside the customer to supply a fully managed structural material and kitting service for existing and new aerostructure work packages. 

VEL price chart

Tern (TERN) shares jump 25% to 26.25p following this week's AGM

Shares in the Internet of Things (IoT) investor have increased by nearly 40% in value since Monday morning when the company released a new web seminar featuring presentations from the firm’s portfolio companies including Wyld Networks, InVMA and Talking Medicines. 

Alongside these presentations, the company also published a question and answer session on Monday which the company informed investors is now available to view on its website. 

TERN price chart

Rockhopper Exploration (RKH) shares rose 14.22% to 9.465p as it recieves update on arbitration against Italy

The oil and gas firm which holds key interests in the North Falkland Basin said it has received an update on its international arbitration against Italy in relation to the Ombrina Mare field.

The Tribunal said it should be in a position to render a decision by July and stated that it will confirm the timeframe by the end of June. Meanwhile, Rockhopper said it continues to believe that it has strong prospects of recovering very significant monetary damages - on the basis of lost profits - as a result of the Republic of Italy's breaches of the Energy Charter Treaty. 

The Company also highlighted to investors that all costs associated with the arbitration are funded on a non-recourse ("no win - no fee") basis from a specialist arbitration funder.

RKH price chart

Cairn Energy (CNE) shares fell 1.78% to 165.95p amid tax dispute with India

Shares in the independent oil and gas firm have lost over 10% since the beginning of March 2021. On Tuesday, Cairn Energy said that it was engaging with the Indian government regarding an arbitration award of over $1.2bn which it had previously won in a tax case.

‘Whilst India has sought to challenge the basis of the award through set-aside proceedings in the Dutch courts, we remain confident of our position and continue constructive engagement with the Government of India whilst at the same time taking all necessary actions to protect our rights to the award and access the value of it as early as possible,’ the company noted.

Despite this, however, reports indicate that the Indian government has asked state-run banks to report back any notification they receive on seizure of assets while it is also reportedly taking steps against Cairn’s efforts to enforce the arbitration award in foreign courts.

The Indian government alleges that Cairn did not pay any global taxes on the gains that it made in India from the reorganisation of its India business back in 2006-07 prior to its IPO.

CNE price chart

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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