New Look lenders poised to take control as it slashes £1 billion debt pile. Lenders to New Look are ready to take control of the ailing fashion retailer as it tries to slash its £1 billion debt pile and stay afloat amid turbulence on the High Street, it emerged on Monday. The company’s executive chairman Alistair McGeorge said a refinancing deal will “secure the company’s future and grow profitability”. The fast-fashion chain, which has already closed 86 of its 593 stores in Britain and exited China, hopes to cut its debt to £350 million from £1.3 billion this summer. It will also seek to raise an extra £150 million by issuing new bonds on top of a string of existing ones. A group of bondholders to New Look have hired FTI Consulting to advise them on the chain’s restructuring, which is also advising lenders to struggling Debenhams.
Investors upbeat on hopes LSE may make late bid to go for Norway’s Oslo Bors. Rumours that London Stock Exchange Group (LSE) may put in a last-minute bid for Norwegian stock exchange Oslo Bors set trading desks alight today. Oslo Bors has received a $729 million (£568 million) bid from pan-European stock-market operator Euronext but has not yet accepted the offer and wants to hear from other bidders. London Stock Exchange Group has been looking for opportunities ever since its mega-merger with Deutsche Börse was blocked by EU regulators in 2017. Traders said opportunities in the market remain scarce, with Euronext owning Paris, Brussels, Amsterdam, Lisbon and Dublin and London Stock Exchange running Borsa Italiana in Milan.
Housebuilders were on the move just a day before Prime Minister Theresa May’s crucial Brexit vote in the House of Commons. Analysts at JPMorgan believe even if she loses, the likelihood of a no-deal Brexit has subsided, adding that housebuilders look cheap given their strong balance sheets and attractive dividend yields. Berkeley Group Holdings (The) (BKG) added 51p to 3801p, while Taylor Wimpey (TW.) was up 1.1p to 157.2p.
Premier Oil (PMO) said it had not yet made a decision about whether to bid for North Sea oilfields put up for sale by US giant Chevron. The shares fell 7.6p to 71.8p.
Goals Soccer Centres (GOAL), lost 8.5p to 63.5p, after the five-a-side operator warned on profits. It blamed losses in the US.
Miner Kore Potash (KP2) is promising success for investors in Africa. Potash, a key fertiliser ingredient, has been a focus for retail investors ever since Sirius Minerals announced it was going to dig up the North York Moors to try to find the stuff. Like most mining projects, costs have overrun and in September last year it said it needed a further $400 million to $600 million to complete the project. One issue is potash’s volatile price, despite the fact it is a key crop nutrient. Since 2011 prices have dropped from $550 per tonne to just $226. Leading producers have all blamed rising competition in recent years for the sluggish prices, although oversupply as well as tumbling crop prices — particularly grain — have also played their part. Either way, this shouldn’t bother Kore as it expects to produce potash at the relatively low cost of $100 per tonne because of how shallow the mine is and its close proximity to ports. As far as mining projects in Africa go this is as good as any — grab a slice before it starts producing.
Ophir Energy turns down £343m offer from suitor MedcoEnergi. Ophir Energy (OPHR) today rejected a £343 million bid from Indonesia’s MedcoEnergi, saying the offer “undervalues” the company. The London-listed energy explorer, which is being advised by Morgan Stanley and Investec, said the board was unanimous in rebuffing the 48.5p-per-share bid made on January 11. Ophir, listed on the FTSE, saw its shares fall 2.5% to 44p after rejecting the offer. MedcoEnergi has until January 28 to table another bid. The group, founded in 1980, has twice approached Ophir with all-cash offers previously worth £410 million in October and £380 million in December.
Revolution Bars warns on profits despite rise in Christmas trading. Revolution Bars Group (RBG) warned on profits on Monday, despite brisk Christmas party trade. The cocktail specialist, which has 79 bars in the UK, said it expects full-year earnings to be £12 million, rather than the £16 million analysts had forecast. Shares in the firm plunged 22p, or 18%, to 99.8p. Last month pre-booked party revenue at sites open for at least a year was up 11.7%, and total comparable sales up 2.6%. Boss Rob Pitcher cheered that growth, but said November wasn’t so busy and “Christmas trading came late”. Total sales in the first-half to December 29 increased 6.4%, but comparable sales dropped 4%. The company also had to grapple with higher business rates and wage bills
