Cinemas chain Cineworld (CINE) has struck the previously flagged deal to buy US peer Regal, agreeing a $3.6bn, or rough £2.7bn price.
Between them the combined group will have more than 9,500 screens across the US and Europe, making it the world’s second biggest cinema operator.
Investors appear to be somewhat nervous about the price tag and/or the value in bringing the pair together, marking Cineworld stock nearly 4% lower in early trade on Tuesday, to 527.5p.
Cineworld plans to sell shares and take on more debt to fund the deal, but shareholders will be relieved to hear the company say that the takeover will not affect its dividend plans.
WATCHDOG PROBES PROVIDENT FINANCIAL
British lender Provident Financial (PFG) has admitted that the UK’s financial watchdog, the Financial Conduct Authority (FCA), has opened an investigation into Moneybarn, its car and van financing arm.
The news has investors heading for the hills in fear of what the probe might uncover, plunging shares in Provident Financial close on 10% lower to 796p in early trade on Tuesday.
Moneybarn typically provides financing to customers seen as a greater credit risk than the mainstream.
UK financial trading company IG Group (IGG) tells investors that it anticipates first half net trading revenue growth of 9% thanks to an expanded client base.
The news is welcomed by the markets, bolstering the share price by around 4% to 677.5p, no doubt relieved that IG has been able to offset a spell of fairly quiet markets.
IOMART PAYS MAIDEN HALF YEAR DIVIDEND
Cloud and managed IT services supplier Iomart (IOM:AIM) has declared its first interim dividend after a typically firm set of half year results. The company declares a 2.25p per share payout for the six months to 30 September
The figures also showing revenue growth of 12% and a 9% increase in earnings before interest, tax, depreciation and amortisation (EBITDA), to £47m and £19.2m respectively. The shares rise around 2% to 379.75p, valuing the Glasgow-based business at £408m.
Major supermarkets head the FTSE 100 leader board on Tuesday with investors seemingly looking to pick up discounted shares. Tesco (TSCO) heads the pack, with a 3.6% share price gain to 202.2p, followed closely by Morrisons (MRW) and Sainsbury (SRBY).
The supermarkets sector has been under investor selling pressure for much of 2017.
MORE MEARS MISERY
Business services firm Mears (MER) slumps close on 9% to 386p after talking down its social housing arm again. This has sparked a review of various operations and it sounds very much like investors can expect increased restructuring costs to further dampen an already poor 2017 performance.
Going the other way is Allied Irish Banks (ALBK) after saying it is on track to deliver a full year financial performance in line with market expectations.
The update sparks a share price rise of more than 3% to €5.73 and comes after a strong third quarter performance from the bank which joined the UK stock market in June
Gold prices held within a tight range in Asian trade on Tuesday, supported by a slightly weaker dollar as investors awaited the next steps over U.S. tax reform legislation for clues.
Oil markets rose in early Asian trade on Tuesday, buoyed by expectations of a drop in U.S. crude stockpiles and after last week’s deal between OPEC and other crude producers to extend output curbs.
