SMALL CAPS MOVERS: Row breaks out over OnTheMarket takeover

Not everyone seems excited about the upcoming takeover of the AIM-listed real estate portal OnTheMarket by the American real estate company CoStar.

Earlier this week, On the marketthat has struggled to make a name for itself against the likes of Right-wing movement and Zoopla published the official plan documents for the agreed acquisition by CoStar via a cash takeover of 110p per share.

The offering price represents a nearly 100% premium over the average market price in the three months prior to the deal’s announcement, but potential activist investor Brett Stone wasn’t having it.

Despite the premium, CoStar’s offer “significantly” undervalues ​​OnTheMarket, said Stone, who noted that the £99 million offer is only 2.9 times OnTheMarket’s last 12 months’ turnover.

Stone has previous dealings with OnTheMarket management, having unsuccessfully attempted to acquire a £50 million activist stake in the company in July.

“My goal is for OnTheMarket and all stakeholders to be better informed and better off,” he said during his activist campaign.

OnTheMarket refuted the claim that CoStar’s takeover bid was poor and is likely to result in significantly higher overall portal costs for UK brokers.

It feels like a done deal, and OnTheMarket shares reflect that, rising more than 77% since the acquisition announcement on Oct. 19.

The AIM-All Share Index closed 4.5 points higher this week at 702.12, marking a gain of 0.66% and outperforming the main index.

There was little to move the stock, although a positive start from Wall Street on Thursday fed into some rebound in London’s capital markets at the end of the week.

Friday’s British economy figures were less than encouraging, with gross domestic product showing modest growth.

According to the ONS, monthly real GDP grew by 0.2% in September, following growth of 0.1% in August, which was revised down from the previous growth of 0.2%.

Blue chips reacted poorly to the figures, with the FTSE 100 falling sharply in early Friday trades and ultimately closing the week in the red.

eEnergy Group rose to the top of the AIM movers’ table this week following news of a £1.75m investment electronics supplier from Luceco plc.

Luceco has the right to nominate a member to the energy supplier’s board of directors.

Luceco said the “continued trend toward clean energy technologies provides an opportunity to expand its offerings into developing categories” and expects “greater collaboration between our companies.”

The investment was music to the ears of eEnergy shareholders, with shares trading more than 50% higher this week.

Naked wines Shares fell 35% following Tuesday’s announcement that CEO Nick Devlin would step down with immediate effect.

His resignation was announced alongside an interim trading statement that showed US sales fell 20% year-on-year, resulting in a downward revision to full-year sales.

Founder and chairman Rowan Gormley, who has now joined the executive board, had given Devlin good advice.

‘Naked Wines’ sales have increased by 50% since he took on the role of CEO, and Nick leaves with much of the hard turnaround work completed, including testing a number of exciting improvements to our customer proposition, which we now testing on a large scale,” Gormley said. from Devlin. “He goes with our best wishes.”

There was another notable resignation in the junior market as Jo Stent, chief financial officer of currency firm Argentex, resigned from the board with immediate effect on Thursday.

Just two weeks earlier, founder-CEO Harry Adams was heading for the exit.

This Friday, Argentex revealed that full-year sales and operating profit would be below current expectations. As a result, shares fell 24%.

Fusion antibodies fell by a quarter as there was no expected rebound in investment in drug discovery and development programs, according to the report.

Trading conditions remain very challenging, the report said, resulting in sales this half falling short of current market expectations, by no less than £541,000.

Advanced materials microcap from Versarien shares fell almost 50% this week, although this was due to a successful £455,000 share placement.

“As we previously announced, the company requires further financing to continue its turnaround strategy and we welcome investor interest in this placement,” said Versarian chief executive Stephen Hodge.

Talking about turnarounds, data and analytics Merit groupThe company’s shares rose by a third on Thursday after posting an interim pre-tax profit of £500,000, after generating a £300,000 loss last year.

On the way to heavy industry, Rainbow rare earth elements rose 28% after US government-backed major metals investor TechMet optioned Rainbow’s Phalaborwa project in South Africa, valuing it at between $151 million and $333 million (£123 million and £272 million) valued.

Anglo-Asian mining Shares rose more than 40% after confirmation of an agreement with the Azerbaijani government that will allow it to reopen the processing plant at the Gedabek gold and copper mine.

The miner had to halt production while consultant Micon conducted an investigation into its tailings dam.

Riverstone energy Its shares were trading 10% higher as it is set to exit its position in Canadian shale company Hammerhead, which has agreed to be bought by Crescent Point Energy Corp in a $1.86 billion deal.

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