The London Stock Exchange (LSE) has confirmed it is in advanced merger talks with TMX of Canada in a move that would create the largest market in the world by number of listings. By combining businesses the enlarged entity would also be the number one market for natural resources, mining, energy and clean technology. Moreover the combined group will be the leading destination for growth companies from emerging markets that are seeking a listing.
The merger would create a £6 billion business offering access to a deep pool of international capital. Significant cost savings of £35 million by year three rising to £100 million in year five also provide a compelling attraction for the move. Shares in the LSE are up 8 per cent this morning to 965p as investors warm to the deal and the expectation that it will be earnings enhancing in the first full year following completion.
Combining forces makes commercial logic while also bringing 20 trading markets and platforms across North America and Europe. This will span cash equities, derivatives and fixed income. The move also brings together a substantial degree of technology expertise as well as a huge provider of global information.
The most comprehensive review of AIM directors' pay available, and this year includes a record sample of 1000+ AIM-quoted companies. The full report is available to order for £385 + VAT. Click here for more info
Latest small-cap and growth company news
Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.
There are many smaller company funds out there; but the new management of Gresham House Strategic (AIM: GHS) is trying to stand out from the crowd by bringing a ‘private equity’ approach to the public market arena. For investors who supplement their own ‘DIY’ stock picking with selected funds, GHS could be an interesting option.
Drug developer Diurnal (AIM: DNL) joined AIM a couple of days before Christmas. It already has one product in final phase III clinical trials and another due to start them shortly. So revenue generation at Diurnal should be a lot closer than at many junior biotechs. If all goes according to plan lead product Infacort should hit the market in 2018.
Forbidden Technologies (AIM: FBT) has been around a long time but has failed to generate much in the way of revenues, despite having a product that sounds like it should be a winner. There were board changes last year and new CEO Aziz Musa is shifting resources towards selling and away from technological development. This has to be the right strategy and we should find out if it’s working as this year unfolds.
Tyratech (AIM: TYRU) offers a compelling product proposition. Controlling bugs and parasites using conventional pesticides is both harmful to the environment and ineffective. Over the years insects have built up resistance to many of the chemicals used to kill them. So Tyratech’s natural products are not only safer but also a lot more effective than the competition.
Results from medical device manufacturer Angle (AIM: AGL) showed its innovative Parsortix system to be nicely on track. The first commercial sales for research use have just been made and three leading cancer centres are moving forward with trials that will support its clinical use in the diagnosis of ovarian cancer.
The 12th annual Grant Thornton Quoted Company Awards took place this week at the Natural History Museum in London. This prestigious event is organised by Growth Company Investor and is a celebration of the success and achievements of the UK’s smaller company sector. We published the shortlisted nominees for each award category earlier in January; so read on to see who the winners were...