The AIM listed modular housing company Eco Buildings announced this morning that they had reached agreement to build 20,000 homes for the Chilean government in a deal reported to be worth as much as EUR420m over the next seven years. A structured payments deal makes this less capital intensive and the company expects to make further similar joint venture announcements in the future. The Eco Buildings share price was 100% higher in early trade.
The FTSE-100 listed distribution and services group published a Q3 update this morning. Management acknowledged that the market remains challenging but have reiterated the full year outlook. Group revenues were off by 0.8%, although margin declines are moderating. The Bunzl share price was around 3% lower at the open.
The consumer packaged goods company issued a brace of notes to the market this morning. The Q3 trading update was in line with forecasts, highlighting organic revenue growth of 5% against volumes which were up by just 1.1%. However more significant was the company’s $2.6bn move for a 75% stake in Coca Cola Beverages Africa. Whilst this will be EPS accretive from the first full year after completion and provides valuable geographical diversification, the move also means that the share buyback programme has been suspended to help fund the arrangement. The Coca Cola HBC share price was as much as 4% lower in early trade although had recovered some of the losses in the first hour of the session.
Most read news on Investegate this morning
Statement regarding Demerger & Share Consolidation - - Unilever (ULVR)
