MOVERS OF THURSDAY 4 MARCH 2021

Francesca Morgan
Market Report
16:26, 4th March 2021

Aggreko (AGK) shares ticked up 6.99% to 880.5p as it nears a firm bid

Shares in the power supplier rose on Thursday afternoon after it was reported that a consortium of TDR Capital and I Squared Capital is close to making a firm bid for the group.

Bloomberg said TDR and I Squared are making final preparations on a binding offer ahead of a Friday deadline and that they had both asked not to be identified discussing confidential information.

The private equity firms have been discussing a potential cash bid of 880 pence per share, valuing the company at about £2.25bn ($3.1 billion), according to a statement last month.

Meanwhile, it was also reported that rival buyout firm Platinum Equity had also made a preliminary approach to express interest in a potential takeover of the U.K. company.

While Aggreko is currently focused on negotiations with both TDR and I Squared, deliberations are still ongoing, and there can be no certainty that this will lead to a transaction.

AGK price chart

Braveheart Investment Group (BRH) shares jump 26.67% to 75.5p as COVID-19 pipeline goes 'fully operational'

The London-listed group informed investors earlier this week that the clinical sample pipeline for the COVID-19 test developed by its investee group, Paraytec, is now fully operational.

Samples are processed and subjected to analysis using Paraytec's photonics-based detection system. The average time to acquire results is less than 120 seconds, a market-leading value.

The lab trials data confirm the performance of this photonics-based test in identifying patients with an infectious viral load within the acceptable range specified by regulatory authorities. 

Trevor Brown, CEO of Braveheart said the results show that the Paraytec technology “is capable of being market leading.” He said the Group’s attention will now turn towards commencing the final trial and commercialising the product either with itself or a partner.

The platform will be developed to test for new viruses and variants of COVID-19 while the Paraytec team is also exploring its use for rapid detection and identification of bacterial and viral pathogens present in patients with sepsis which kills over 11 million people per year. 

BRH price chart

Futura Medical (FUM) shares rose 24.24% to 20.5p as it secures financial and commercial agreements

Shares in the pharmaceutical firm shot up this afternoon after the Group revealed that it has entered into a collaboration with Co-High Investment Management to expand its Erectile Dysfunction ("ED") treatment, MED3000, into China and SouthEast Asia, a significant market for ED.

Co-High will provide funding currently estimated to be up to £4 million for the development and regulatory approval of MED3000 in the region while under this joint collaboration, Futura will be entitled to 50% of regional profits from the commercialisation of MED3000.

“We remain confident that we will achieve EU and US approval for MED3000 as a clinically proven, fast-acting, topical and highly tolerable treatment for ED patients, without the need for a doctor's prescription and look forward to updating the market in the coming months,” it said.

Meanwhile, the Group has also secured financing transactions with HT Riverwood Multi-Growth Fund which provides Futura with up to £2m in cash, £1.5m of which has been received.

FUM price chart

Revolution Bars Group (RBG) shares rose 13.96% to 32.25p as it prepares to reopen 20 sites next month

Following Boris Johnson’s roadmap and the recent budget announcements, Rob Pitcher, CEO of Revolution, told investors this morning that “the light at the end of the tunnel is getting brighter.”

‘Although the date that we will be able to commence the reopening of our estate externally on 12 April 2021 is later than we had hoped, the clarity that has been provided by the plan to lift lockdown restrictions enables us to fully prepare and manage the expectations of our colleagues,’ said the operator of the Revolution and Revolución de Cuba brands.

The statement explained that initially, on 12 April 2021, the Company will open 20 bars, and following this, with the opening of indoor hospitality on 17 May 2021, all 66 bars will reopen. 

"With the encouraging progress of the vaccination programme, clarity in the timetable to reopening, and the additional financial support measures announced by the Chancellor, the light at the end of the tunnel is getting brighter,” Pitcher told investors in his statement.

RBG price chart

Baillie Gifford US Growth Trust (USA) shares fell 8.96% to 303.5p as investors trade in technology stocks

Despite the fund having generated a 110% return last year, shares in the trust have shed around 25% in value since mid-February as rising interest rates continue to ward off investors. 

The recent slump in the technology-orientated fund comes as investors continue to trade in growing technology companies in favour of those set to profit as the economy recovers.

As reported by the Telegraph, the recent sell-off was also driven ‘in part by fears that Joe Biden's $1.9 trillion stimulus package and a wider recovery will stoke higher inflation and that the US central bank will raise interest rates to increase the cost of borrowing and cool the economy.’

USA 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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