S&P 500 2,441.20 17.28
Gold$1,224.80 $5.30
Nasdaq 6,253.81 61.92
Crude Oil $60,490.00      $-1570.00
Market Update

Prosiebensat Sells Swedish Unit; Whitbred Jumps on Hotels, Costa Momentum

Author: Sarla Buch
Last Update: 11:07 AM ET June 21 2017

4:00 PM Frankfurt – Centrica sells two power plants to Czech power producer. The investment manager IP Group offers to buy rival Touchstone for $587 million. Prosiebensat 1 sells its Swedish online travel agency for €508 million. Whitbread jumped on strong sales at Premier.

In London trading, FTSE 100 index fell 33.89 or 0.5% to 7,449.09 and in Frankfurt the DAX index decreased 42.18 or 0.3% to 12,773.01.

In Paris, CAC 40 index slipped 19.03 or 0.4% to 5,274.62.

Aviva Plc slipped 0.7% to 534.50 pence after Reuters said the U.K.-based health insurance services provider is planning to eliminate its holdings in stocks and bonds worth about £1 billion or $1.3 billion to support the socially responsible investing.

Centrica Plc advanced 2.9% to 208 pence after the U.K.-based energy producer and distributor agreed to sell its two largest gas-fired power plants Langage and South Humber Bank to a subsidiary of Czech energy company EPH for £318 million or $401 million in cash.

The transaction is expected to complete during the second-half of 2017.

Centrica plans to invest £180 million in new flexible energy storage and gas-fired generation capacity.

IP Group Plc gained 1.1% to 134.90 pence after the U.K.-based investment manager said that it had made takeover offer to £466 million or $587 million for the rival Touchstone Innovations plc.

However, in May Touchstone had rejected the offer.

IP said it had received support from shareholders of Touchstone, representing 74.3% of its issued share capital and the offer document will be delivered in July 2017.

Prosiebensat 1 Media SE dropped 1.6% to €36.82 after Germany-based media and free television services provider divested its Sweden-based online travel agency Etraveli Holding AB to CVC Capital Partners for about €508 million or $565 million.

The broadcaster forecasted fiscal 2018 revenues of about €4.5 billion and operating profit of about €1.15 billion.

Separately, the advertising-financed free television provider agreed to acquire domestic majority stake in balloon underwater dining, trip and bungee jumps services provider Jochen Schweizer GmbH for about €108 million or $120 million.

Provident Financial Plc tumbled 17.4% to 2,368 pence after the U.K.-based consumer financial services provider estimated profits in full-year from the consumer credit divisionprofit to drop to £60 million from £115 million in 2016 after restructuring at its consumer credit business.

Whitbread Plc jumped 4.9% to 4,040 pence after the U.K.-based restaurant and bars operator said comparable sales in the first-quarter ending on June 1 advanced 2.9% and sales in Costa Coffee business increased 1.1% while its total sales jumped 8.7% from a year ago.

Comparable sales in Premier Inn soared 4.7% and total surged 9.2% and comparable sales in restaurants segment rose 0.7% and total sales increased 2.1%.

The hotel chain plans to increase the number of rooms in the Premier Inn UK to about 85,000 and the chain estimate global system sales of £2.5 billion for Costa by 2020.

“We have a clear plan to deliver growth in our existing estate and remain on track to open approx 4,200 hotel rooms, 230-250 Costa coffee shops and install about 1,250 Costa Express machines this year,"" said chief executive officer Alison Brittain.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc