Team17’s game Hammerting
(Picture: Team17)Shares in Pearson slumped to the bottom of the FTSE today after private equity group Apollo said it was no longer interested in a take private bid.
Shares in the education group dropped as much as 12% after Apollo said it had been “unable to reach agreement with the board of Pearson” and was walking away.
Pearson said it recently received a third 884.2p per share offer from Apollo but concluded it “significantly undervalued the company and its future prospects”, so rejected it.
“Pearson’s board is confident that the direct to consumer, lifelong learning strategy set out by management in March 2021 will create sustainable, long-term value for Pearson stakeholders,” the company said.
Shares dropped to trade at 728p.
At the other end of the table, Shell gained .8% after the government extended a license on the Cambo Oil Field in the North Sea, giving the oil giant more time to consider whether to restart the project.
Commodity stocks rallied after Russia threatened to price all its exports in roubles, a move that would likely restrict supply.
Overall, the FTSE 100 was up just 6.5 points at 7543.
AIM-listed videogame company Team17 today warned of a £4 million profit hit as result of Russia’s invasion of Ukraine and ongoing fallout from the pandemic.
The company also expected inflation and wage-related increases to cost it an extra £1.7 million by the end of 2022.
Team17 reported a 11% rise in profits to £29.1 million in 2021, compared with £26.2 million in 2020. Revenue was up 9% at £90.5m compared with £83 million in 2020.
The London-based firm has already made three strategic acquisitions this year: the developer Astragon, US publisher The Label and rights and assets of the game Hell Let Loose.
Shares were down 40p at 550p.
Higher up AIM, rival Keywords Studios saw its share price rise 118p to 2,456p after it reported a 37% rise in revenue to €512 million (£434 million) and a 56.4% rise in profits to €86 million.
The Dublin-headquartered firm warned of rising costs, but claimed it could offset this with growing demand and cash reserves totalling €103 million.
Publisher Bloomsbury’s trading update pushed its shares up 23p at 389p. The London firm, which was behind the bestseller Sarah J Maas’ Crescent City: A House of Sky and Breath, said it expected to beat expectations of £212.5 million revenue and £22.3 million pre-tax profits in the year ending 28 February 2022.
Kuwaiti-based Agility has had its £571 million takeover bid of John Menzies accepted.
The Scottish air services firm had rejected a previous offer of 510p per share. Edinburgh-based Menzies had given Agility until 30 March to make a fresh offer, and the deal unveiled today offered shareholders 608p.
The announcement sent shares up 22p at 592p.
