Hotel Chocolat (LON: HOTC) is recommending a 375p/share bid from Mars, which values the chocolate company at £534m. The share price soared 161.9% to 364p and it has not been this high for 18 months. Mars is keen to help Hotel Chocolat expand into new regions. The track record of the current management when it comes to international expansion has been mixed and it will help to have a larger company with greater resources backing the expansion. Shareholders can accept an alternative offer of one rollover share in the bid vehicle for each share. The value of these shares will be dependent on the performance of the business, and this would be taking a risk.
City Pub Group (LON: CPC) is also the subject of an agreed bid. Young & Co’s Brewery (LON: YNGA) is offering 108.75p in cash and 0.032658 of an A share for each City Pub Group share, valuing it at 145p/share or £162m. The share price jumped 37.4% to 136p. Young’s has been seeking to grow its managed pubs business and believes it is rare to have the opportunity to acquire such an attractive portfolio of pubs. The deal will increase the number of pubs owned by 50 to 279. A significant amount of City Pub Group’s central overheads of £5.6m could be saved by the combined group and there could be other savings. Young’s shares fell 0.45% to 1105p.
Celadon Pharmaceuticals (LON: CEL) has secured a new sales contract with a European medicinal cannabis company that could generate up to £26m over a three-year period. The first delivery will be in the second half of 2024. The cannabis grower and drug developer will supply pharmaceutical-grade cannabis. There are other interested buyers. The share price rose 23.5% to 102.5p.
Great Western Mining (LON: GWMO) has identified a potential copper porphyry system at Huntoon Valley in Nevada. There is visible surface copper oxide mineralisation. The company has staked 19 claims to the west of the area. The hare price is 14.1% ahead at 0.0525p.
FALLERS
Craven House Capital (LON: CRV) investee companies Garimon and Honeydog have ended talks with fully listed shell Amigo Holdings (LON: AMGO) about a reverse takeover. Amigo will continue to wind down its lending assets. Craven House shares slumped 18.2% to 15 cents.
Cleantech company MyCelx Technologies Corporation (LON: MYX) has won a project worth $5.4m to clean up overboard discharge. This will not generate revenues until 2024. However, lower volumes and delays mean that 2023 revenues will be between $11m and $11.8m instead of the $13.5m previously expected. The share price is 6.2% lower at 60.5p.
Arkle Resources (LON: ARK) has raised £215,000 at 0.35p/share to fund lithium exploration at the Aughrim licence block. The share price fell 5.88% to 0.4p. More than two-thirds of the shares were taken up by directors John Teeling and James Finn.
Tatton Asset Management (LON: TAM) continues its impressive growth in assets under management, which have passed £15bn this month. There was a small performance gain in the first half, but the growth has come from net inflows of around £150m/month. The growth has led to improving margins and that more than made up for a dip in profit contribution from the Paradigm mortgage-related business. Earnings grew 6% to 10.52p/share. The dividend is being rebased with a 78% increase in the interim to 8p/share. The share price still dipped 5.74% to 509p, but it is still 11% higher than at the start of the year.
Ex-dividends
DX Group (LON: DX.) is paying a final dividend of 1p/share and the share price increased 3p to 46.5p, following a 47.5p/share bid from HIG European.
Equals (LON: EQLS) is paying a dividend of 0.5p/share and the share price rose 0.5p to 117.5p.
Fonix Media (LON: FNX) is paying a final dividend of 4.89p/share and the share price declined 3.5p to 194p.
James Halstead (LON: JHD) is paying a final dividend of 5.75p/share and the share price slipped 6.75p to 203.25p.
Mincon Group (LON: MCON) is paying an interim dividend of 1.05 cents/share and the share price is unchanged at 55p.
Portmeirion Group (LON: PMP) is paying an interim dividend of 3.5p/share and the share price is unchanged at 236p.
Strix (LON: KETL) is paying an interim dividend of 0.9p/share and the share price fell 1.45p to 69.55p.
Wynnstay Properties (LON: WSP) is paying an interim dividend of 9.5p/share and the share price declined 10p to 715p.
