Friday, 12 Aug 2022

Remgro Reaches Agreement On Terms Of Acquisition Of Mediclinic

Phoenix Group To Acquire Sun Life UK For 248 Mln Pounds Cash

Phoenix Group Holdings plc (PHNX) on Thursday announced the acquisition of Sun Life UK, a closed book UK life insurance company, from Sun Life Financial Inc. (SLF) for cash consideration of 248 million pounds, implying a price to shareholder Own Funds ratio of 83 percent. The acquisition is expected to complete in the first quarter of 2023.

The deal is expected to deliver approx. 470 million pounds of incremental long-term cash generation, of which approximately 30 percent would emerge in the first three years.

The acquisition is expected to result in approx. 125 million pounds of integration synergies, net of costs, from cost efficiencies and capital management actions, representing around 50 percent of the consideration paid.

The company has also agreed on a new long-term strategic asset management partnership with Sun Life that complements its existing relationships and further enhance and diversify the liquid and illiquid credit origination capabilities in North America.

The value and cash flow generated through this acquisition is expected to support a sustainable 2.5 percent inorganic increase in the Group’s dividend, to take effect from and including the 2022 Final Dividend, subject to completion.

Shares of Phoenix Group Holdings closed Wednesday’s trading at 652.80 pence, up 7.40 pence or 1.15 percent from the previous close.

Shares of Sunlife Financial Inc. closed Wednesday’s trading at $45.90, down $0.16 or 0.34 percent from the previous close.

Mitsui Fudosan Q1 Profit Climbs; Backs FY22 Outlook

Mitsui Fudosan Co., Ltd (MTSFY.PK), a Japanese real estate developer, on Thursday reported an increase in earnings for the first quarter, driven by a rise in revenues. The company also maintained its fiscal 2022 view.

For the quarter ended in June, the Chuo City, Tokyo-headquartered firm posted profit attributable to owners of the parent of 52.91 billion yen, 54 percent higher than 34.39 billion yen of previous year quarter.

Operating income surged 120 percent to 77.11 billion yen from 35.12 billion yen a year ago.

Mitsui registered revenues from operations of 576.72 billion yen, 28.5 percent higher than 448.70 billion yen, reported for the same period of 2021.

For fiscal 2022, the company continues to expect attributable profit of 190 billion yen, up 27.9 percent from last year; operating income of 300 billion yen, a year-over-year growth of 25.7 percent, and revenues of 2.20 trillion yen, a year-over-year growth of 26.2 percent.

Voestalpine Q1 Profit Surges; Updates FY22 View; Stock Down

Voestalpine Group (VLPNY.PK), an Austrian steel-based technology and capital goods company, reported Thursday that its first-quarter profit before tax surged to 670 million euros from last year’s 311 million euros.

Profit after tax grew to 615 million euros from 259 million euros a year ago. EBITDA soared 68.5 percent to 879 million euros from 522 million euros last year.

Revenue grew 37.7 percent to 4.6 billion euros from prior year’s 3.4 billion euros.

Looking ahead for fiscal 2023, the company expects EBITDA of about 2 billion euros. The company previously expected full-year EBITDA of between 1.8 billion euros and 2.0 billion euros.

The company said it cannot assume a continuation of its earning performance for the remainder of the year due to the dampening sentiment, despite the high amount of order backlogs at the moment.

voestalpine expects a significant cooling of the economy in the second half, with the corresponding impact on the company’s earnings.

In Vienna, voestalpine shares were losing around 4 percent to trade at 21.02.

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Manz AG Posts Loss In H1; Revises Down FY22 Outlook

Manz Automation AG (MANZF.PK), a German engineering company, on Thursday reported a loss for the first half. However, the revenues improved from last year.

Earnings reflected negative impact of an impairment in the course of a defaulted insolvency claim in the solar sector, as well as surge in material costs, supply chain disruptions and associated postponements of in a major project.

Looking forward, for the fiscal 2022, the firm has revised down its previous guidance.

For the six-month period, the firm posted loss before interest and taxes at 6.9 million euros, compared with EBIT of 12.3 million euros of previous year period.

Loss before interest, taxes, depreciation, and amortization was at 1.1 million euros, compared with EBITDA of 18.1 million euros a year ago.

The Group revenues, however, improved to 126.7 million euros from last year’s 114.4 million euros.

Looking ahead, for the fiscal 2022, the company now expects a revenue growth in the low to mid double-digit percentage range with an EBITDA margin in the low single-digit percentage range and balanced EBIT.

In its previous outlook provided in March, Manz had projected a significant increase in revenues in the mid double-digit percentage range with an EBITDA margin in the mid to upper positive single-digit percentage range and an EBIT margin in the low to mid positive single-digit percentage range.

Remgro Reaches Agreement On Terms Of Acquisition Of Mediclinic

The boards of Manta Bidco, Remgro, SAS and Mediclinic have reached an agreement on the terms of a recommended cash offer to be made by Bidco to acquire the entire issued and to be issued ordinary share capital of Mediclinic, other than the 328,497,888 Mediclinic shares already owned by the relevant Remgro subsidiaries. Manta Bidco is a newly formed company owned by joint offerors: Remgro; and SAS Shipping Agencies Services, a subsidiary of MSC Mediterranean Shipping Company SA. Scheme shareholders shall be entitled to receive 504 pence in cash for each Mediclinic share held.

The deal values the entire issued and to be issued ordinary share capital of Mediclinic at approximately 3.7 billion pounds, and an implied enterprise value of approximately 6.1 billion pounds.

Mediclinic shareholders shall be entitled to receive the final dividend of 3 pence per Mediclinic share declared by Mediclinic on 25 May 2022.

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