GlaxoSmithKline Consumer Healthcare Sale Would Dampen Appetite for Stock

GlaxoSmithKline's plans to retain but split up its Consumer Healthcare division is widely viewed as an event that could crystallize value, Jefferies says. This is why a potential sale of the division--which comes as the company confirmed reports of acquisition proposals by Unilever--is likely to dampen appetite for the stock, Jefferies says. "At least initially we expect many shareholders would fear a large acquisition and the risk of inferior returns," the investment bank says. The British pharma major has rejected Unilever's proposals and fairly so, given that a GBP50 billion bid reflects a modest 10% acquisition premium, Jefferies says.

 
Companies News: 

Centralnic Sees 2021 Revenue, Adjusted Ebitda Ahead of Market Views

Centralnic Group PLC said Monday that it expects 2021 revenue and adjusted Ebitda to rise, exceeding market consensus.

---

Hostmore Expects to Beat FY Ebitda View, Boosted by Strong December

Hostmore PLC said Monday that it currently expects earnings before interest, taxes, depreciation and amortization for the year ending Jan. 2 to beat the market consensus of 18.6 million pounds ($25.4 million), boosted by a better-than-expected December.

---

Unilever Looking to Reposition Portfolio After GSK Consumer Healthcare Approach -- Update

Unilever PLC said Monday that it has decided to expand its presence in higher-growth categories after it made an approach for GSK Consumer Healthcare over the weekend that could potentially be worth $68 billion.

---

Clinigen Group Agrees to New, Higher GBP1.3 Bln Takeover by Triton Funds

Clinigen Group PLC said Monday that it has agreed an improved and final 1.3 billion pound ($1.78 billion) takeover by Triton Funds.

---

Access Intelligence Says Covid-19 Challenges in Southeast Asia to Affect 2022, 2023 Ebitda

Access Intelligence PLC said Monday that it expects current pandemic-induced challenges in Southeast Asia to affect Ebitda in 2022 and 2023 as they have been more severe than anticipated.

---

Angus Energy Shares Rise on Six Approaches to Buy Company

Angus Energy PLC shares rose Monday after it said that it has received at least six approaches to participate in its formal sales process, or making offers for the company and its assets.

---

Eurowag Shares Rise After Backing 2021 Guidance, Clearance of Webeye Acquisition

Shares of W.A.G. Payment Solutions PLC rose Monday after the company, known as Eurowag, said it expects 2021 adjusted earnings before interest, taxes, depreciation and amortization--which strip out exceptional and other one-off items--to be in line with the board's expectations, boosted by revenue growth.

---

H&T Group Expects 2021 Revenue in Line With Market Views

H&T Group PLC said Monday that it expects 2021 revenue to be in line with market expectations, and that its performance in the second half of the year was consistently strong.

---

Pebble Group Expects 2021 Results to Exceed Market Views

Pebble Group PLC said Monday that it expects 2021 results to exceed market expectations as both its Facilisgroup and Brand Addition businesses performed well throughout the year.

---

Leeds Group Swung to 1H Pretax Loss, Shares Fall

Shares in Leeds Group PLC fell Monday after the company said it swung to a pretax loss in the first half of fiscal 2022 as its performance was hurt by restrictions across Europe to curb the Omicron coronavirus variant.

---

Hurricane Energy Production Met Views, Revenue Rose in 2021

Hurricane Energy PLC said Monday that production met expectations and revenue rose in 2021, and it expects to soon pay off its bond debt.

---

Yourgene Health Raises Guidance Again

Yourgene Health PLC said Monday that it expects to beat upgraded market revenue forecasts for the year, its third upgrade since October.

---

Forward Partners Appoints Lloyd Smith as CFO

Forward Partners Group PLC said Monday that it has appointed Lloyd Smith as chief financial officer with effect from March 21.

---

M.P. Evans 2021 Crop, Production Increased; Announces Special Dividend

M.P. Evans Group PLC said Monday that crop and production increased in 2021 and it has announced a special dividend.

---

Oxford BioMedica CEO to Step Down

Oxford BioMedica PLC said Monday that Chief Executive Officer John Dawson will retire from the company.

---

Unilever Sets Out Ambition to Expand in Health Products

Unilever PLC said it wants to significantly expand its footprint in health, beauty and hygiene, and plans to sell off slower-growing parts of its ice cream-to-soap consumer brands empire to fund major acquisitions.

 
Market Talk: 

Ashmore Has a Lot of Value on the Long-Term Stance

1110 GMT - Ashmore Group's performance update for the quarter shows short-term uncertainty, which has sent its share price down by 25% over the past six months, Peel Hunt says. However, the company still has a lot of value for those looking for a long-term stance, the U.K. brokerage says. "Ashmore today is as strong as ever--there is still significant potential to outperform in the coming years," Peel Hunt says. Shares trade down 1.8% at 284.2 pence.

---

Access Intelligence Hit Hard in Southeast Asia by Covid-19

1059 GMT - For U.K.-based information-and-marketing company Access Intelligence, the effect of Covid-19 has been harsh in Southeast Asia as corporate and public-sector customers reduced spending, finnCap says. The brokerage says that while the company's post-pandemic prospects remain strong, with planned investment set to continue and even accelerate, it lowers its revenue and earnings expectations for fiscal 2022 and fiscal 2023. "We look forward to continuing proof of execution in the U.K. and Australia/ New Zealand, and evidence of recovery in south east Asian customer spend, at which point with a healthy cash buffer throughout the forecast horizon, the valuation can respond and confidently look into 2023 and beyond," it says. FinnCap lowers its target price on the stock to 210 pence from 225 pence. Shares are down 24% at 116 pence.

---

UK GDP Growth Seen Lower in 2022 as Omicron Takes Its Toll

1040 GMT - UBS has updated its U.K. GDP forecasts for 2021 to 2023 to 7.2% growth in 2021, from 7.0%, due to upward revisions to previous quarters, and to 4.3% in 2022 from 4.6% previously. "Despite the limited tightening in mobility restrictions in response to the spread of Omicron, voluntary social distancing and staff absences are expected to weigh on activity in the fourth quarter of 2021 and 1Q of 2022, and this is the key factor driving the cut in our 2022 forecast," economists at UBS say. For 2023, UBS forecasts 1.8% GDP growth, up from 1.5% previously.

---

Taylor Wimpey May Face Hurdles Despite Positive Update

1012 GMT - Taylor Wimpey shares rise 3% after the U.K. house-builder reported in-line 2021 trading and said it intends to start a share buyback. "Management seemed cautiously optimistic in its outlook statements, with the group on track for full-year guidance, but referring to economic uncertainty and continued build-cost inflation," Hargreaves Lansdown analyst Matt Britzman says. "Higher selling prices are enough to offset rising costs for now, but there's a limit to how long that can continue - especially if broader costs of living and mortgage rates increase."

---

GSK Consumer Health Arm May be Worth More on its Own

0957 GMT - A potential sale of GlaxoSmithKline's consumer healthcare business to rival Unilever holds positives and negatives for the drug company's shareholders, says AJ Bell. While GSK management would probably welcome being paid a high price for the division, some long-term GSK investors may not want a sale as they might have been looking forward to the consumer-goods unit being de-merged later this year, the brokerage says. "De-mergers can be beneficial as management are able to run the business with more freedom, rather than simply being a division of a bigger company and having to follow group protocol," Bell's investment director Russ Mould says. "Therefore, the consumer goods arm could be worth a lot more in time." GSK shares rise 4%.

---

Taylor Wimpey's 2021 Update Should Reassure Investors

0930 GMT - Taylor Wimpey's 2021 update was reassuring, reiterating 2021 performance will meet expectations on the back of a support backdrop, and committing to return excess cash, Citi says. The house builder's outlook remains positive, though the update is unlikely to significantly change market consensus, the U.S. bank says. "[The] group's reassuring update--on track to deliver on its medium-term guidance and committed to return excess cash by way of share buyback--should support sentiment on the shares and drive a re-rating in our view," Citi says, adding that the stock's price looks relatively cheap given Taylor Wimpey's 2022 targets. Citi retains its buy rating and 225 pence price target on the stock. Shares are up 2.6% at 158.0 pence.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

January 17, 2022 06:34 ET (11:34 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Apr 2022 to May 2022 Click Here for more FTSE 100 Charts.
FTSE 100
Index Chart
From May 2021 to May 2022 Click Here for more FTSE 100 Charts.