Canal+ shares today made their debut in a much-needed boost for the London stock market.
The listing by the film and TV production company behind the Paddington movies follows its demerger from French media giant Vivendi.
Meanwhile, the £3.6 billion Royal Mail takeover bid by Czech billionaire Daniel Kretinsky’s EP Group has been backed by the Government.
FTSE 100 Live Monday
- Royal Mail takeover backed
- Entain shares fall on AML case
- Canal+ shares launch on LSE
Market update: Canal+ shares fall on debut, builders weaken in FTSE 100
10:32 , Graeme EvansThe £2.5 billion debut of Canal+ today provided some cheer in a session when Royal Mail owner IDS moved closer to joining the stock market exodus.
The Financial Times reported today that 2024 is on course to be the worst year for departures since 2009, with 88 companies delisting or transferring their primary listing elsewhere and only 18 companies taking their place.
Executives of Canal+ attended a LSE market opening ceremony on the first day of dealings for the Paddington production company, which has split from French media giant Vivendi.
The auction process priced shares at 290p before their reverse to 244p. At about £2.5 billion, the listing is the biggest since GSK spin-off Haleon in 2022.
AJ Bell investment director Russ Mould pointed out that certain investment funds which held Vivendi may be restricted to French-listed stocks and so they have become forced sellers of Canal+.
He added: “It can take a few weeks or months before the shareholder register shifts to individuals who want to hang around longer term.”
International Distribution Services is heading the other way after Czech billionaire Daniel Kretinsky’s EP Group revealed agreements with government ministers and postal union representatives.
Should the £3.6 billion takeover gain shareholder approval, a so-called “golden share” in the postal service will give the government a say on any changes to Royal Mail’s ownership, headquarters location and tax residency.
In other corporate developments, Entain shares fell 6% or 46.8p to 768.2p after Australia’s financial crime regulator launched civil penalty proceedings against the gambling company.
It alleged “serious and systemic” non-compliance with Australia’s anti-money laundering and counter-terrorism financing laws.
Entain said it has cooperated with AUSTRAC and is implementing further enhancements to its compliance procedures.
Other big fallers in the FTSE 100 index came from the housebuilding sector after the Times reported that the government is considering a “use it or lose it” tax in an effort to force firms to deliver homes more quickly.
Persimmon fell 3.1p to 128.05p, Taylor WImpey dropped 2.75p to 121.6p and Barratt Redrow weakened 8.2p to 428.8p.
The FTSE 100 index fell 20.05 points to 8280.28, with Barclays, NatWest and Lloyds Banking Group among the stocks on the risers board after gains of 1%. AstraZeneca also rallied 86p to 10,554p.
In the FTSE 250 index, Johnson Matthey shares rose 5% or 74p to 1426p after its largest shareholder published a letter calling on the board of the clean air firm to launch a strategic review.
Computacenter shares topped the fallers board, declining by 7% or 152p to their lowest level in over a year at 2086p after the IT services group announced that finance director Christian Jehle has left the business.
On AIM, the shares of Filtronic jumped another 8% or 5.6p to 77.8p after the wireless communications firm made another upgrade to results guidance.
The shares are up more than 250% this year, having recently announced a strategic partnership that will see the Yorkshire-based company supply modules to SpaceX’s Starlink platform.
Entain AML proceedings trigger shares reverse
09:29Entain shares are down 5% after Australia’s financial crime regulator announced it has launched civil penalty proceedings against the gambling company.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) alleges “serious and systemic” non-compliance with Australia’s anti-money laundering and counter-terrorism (AML/CTF) financing laws.
It is the first time AUSTRAC has brought civil penalty proceedings against businesses operating in the online betting sector.
Entain chief executive Gavin Isaacs said today: "We note the allegations made, which we take extremely seriously.
“We have cooperated fully with AUSTRAC throughout its investigation and we are implementing further enhancements to Entain Australia's AML and CTF compliance arrangements.
“Whilst we still have some further improvements to make, we expect these to be implemented in line with the plan we communicated to AUSTRAC in 2023.
“We are committed to keeping financial crime out of gambling and continue to play our part in supporting a well-regulated and compliant sector for our customers, stakeholders and the wider community."
Shares in Entain, whose brands include Ladbrokes, fell 39.4p to 775.6p.
Royal Mail pledges move takeover nearer to completion
08:49 , Graeme EvansDaniel Kretinsky’s EP Group takeover of Royal Mail owner IDS has moved closer after it revealed agreements with the Government and unions.
The undertakings with the Business Secretary include a so-called “golden share” in the postal service, meaning the Government will need to approve any key changes to Royal Mail’s ownership, headquarters location and tax residency.
There were already a number of pledges made by Mr Kretinsky when the proposed £3.6 billion deal was announced in May, including the commitment to protect the universal service obligations.
It has also announced an agreement in principle with the CWU, which represents frontline workers in Royal Mail, and an agreement in principle with CMA Unite, which represents Royal Mail's managerial workforce.
Canal+ makes stock market debut, IDS shares rise
08:23 , Graeme EvansCanal+ shares have begun trading after executives of the film and TV production company attended a market opening ceremony at the London Stock Exchange.
The opening auction process has given the Vivendi spin-off an initial valuation of about £2.7 billion, making it London’s largest debut stock since Haleon in 2022.
The FTSE 100 index is 4.60 points higher at 8304.93
Meanwhile, investors are awaiting confirmation of the BBC report that the takeover of the Royal Mail parent company IDS has been given the go-ahead by the government.
The FTSE 250-listed shares are 3.2p higher at 362.2p.
Royal Mail takeover approved - report
07:39 , Graeme EvansThe sale of Royal Mail’s parent company to a Czech billionaire is in the spotlight after the BBC reported that the takeover has been approved by the Government.
Thw takeover by Daniel Kretinsky’s EP Group from International Distribution Services is due to be announced on Monday, according to the report.
He is believed to have made several concessions to gain approval, including allowing workers to get a 10% share of any dividends paid out to him.
The Government will reportedly keep a so-called “golden share” that will mean it needs to approve any key changes to Royal Mail’s ownership, headquarter location and tax residency.
Canal+ shares set to begin trading
07:26 , Graeme EvansFilm production company Canal+ will become this year’s biggest London market listing when its shares begin trading this morning.
According to the Sunday Times, the Vivendi spin-off will have a valuation of about 3.5 billion euros (£2.9 billion).
The company, whose portfolio includes the Paddington production firm Studiocanal, is not expected to meet the eligilbity criteria for the FTSE 100 index.
Index seen lower as Asia markets struggle, Bitcoin at $105,000
07:01 , Graeme EvansThe FTSE 100 index is set to open 12 points lower at 8289, having fallen by 11 points at the end of last week.
Today’s session in London includes the debut of production company Canal+, which has been spun off from parent business Vivendi. Its shares will not be eligible for the FTSE 100 index, however.
On Friday, the Dow Jones Industrial Average closed 0.2% lower and the S&P 500 index finished close to its opening mark at 6051.
Asia markets are also weaker this morning, led by a decline of 1.1% for the Hang Seng index in Hong Kong.
Bitcoin is at $104,992 while Brent Crude is slightly lower at $74.15 a barrel. The pound starts the week at $1.263.
