Shares in the FTSE-100 listed insurer surged this morning after the company announced it had disposed of its US protection business for $2.3bn and on completion would return £1bn of that to shareholders via a buyback. As a result, the business now intends to return 40% of its market cap to shareholders over the next two years. The L&G share price added around 7% shortly after the open, boosting the valuation by close to that £1 billion level as a result.
The company makes portable oxygen generators and IPO’d shortly after the peak of COVID but it’s been a rough ride for the business in terms of valuations since. This morning the company announced the completion of a deeply discounted capital raise, with shares sold at close to a 70% discount from yesterday’s levels. That’s now been priced in and the Belluscura share price is down 68% in early trade. Proceeds will be used for inventory and to reinforce the balance sheet.
The commodities trading business with an operating base in Ukraine continues to see share price volatility following the sell off earlier in the week. Allegations of illegal mining and an accompanying civil claim against a subsidiary spooked the market but the business believes the situation to be without merit. Following the more than 50% slide on Tuesday, the recovery has been fairly brisk. The Ferrexpo share price is up around 3% in early trade on Friday, with losses for the week now pared to less than 20%.
Sale of US Protection; new strategic partnership - - Legal & General Group (LGEN)
Combination with HINT - - JPMorgan Global Growth & Income (JGGI)
