On Thursday, the decline in Digital Nine Infrastructure shares continued and the stock ended the session at the lowest price ever recorded.
The data centre and wireless network infrastructure investor’s share price dropped after the company spooked investors with an announcement regarding the sale its stake in Verne Global. Verne Global is a data operator, and the most valuable asset of the group.
Digital 9, which was a part of the FTSE250 until last year raised concerns over the sale when it informed investors that Iceland’s antitrust authority launched a phase-III investigation into the proposed sale of $575 million to Ardian France. According to the rules, it can take 90 days for the investigation to be completed, but this can be extended up to 125.
Digital 9’s previous guidance on the approval of a potential sale may have been wrong.
Analysts at Liberum stated that while the “extension of the timeline” is not helpful given the perception of the company by the market, the greater attention will be focused on whether this update increases execution risk or conditions for the deal.
In November, the company launched a review of its strategic plan to reduce debt and improve its finances.
Digital 9’s share price fell 5 1/2p or 23.7% to a new low of 17 3/4p following the update.
British American Tobacco ranked among the best performers, with a gain of 165p or 7.1% to £24.84. The tobacco giant announced alongside its full-year financial results that it is “actively seeking” to sell a portion of its stake in India’s ITC. This has boosted hopes for a return of share buybacks.
DS Smith, which jumped 27 1/2p or 9.8 percent to 308 1/4p after confirming that it “received a very preliminary expression of interest” by its rival paper-and-packaging group Mondi, joined BAT on the FTSE 100’s risers board.
The Ladbrokes-owned Entain gained 14 1/4p or 1.5 percent to 986 3/4p following the BetMGM joint venture in America turning a profit in the second half 2023 due to the strong demand of punters who cash in on sporting events.
A disappointing third-quarter update by SSE (down 77 1/2p or 4.7%) and AstraZeneca (down 667p or 6.4%), after fourth-quarter profit fell short of analyst’s expectations), dragged London’s leading share index from positive territory. The FTSE 100 finished the day 33.27 or 0.40% lower at 7,595.48. The FTSE 250, which is more focused on the UK, closed flat at 19,102.72.
Babcock investor event held on Wednesday did not appear to be well received by the market. Shares fell 9 percent due to disappointment from investors over the lack of upgrades. Berernberg said that Babcock’s positive assessment of the bank’s turnaround helped to boost the share price by 35p or 8.3 percent, reaching 459 1/4p.
Shares of Syncona rose 7 1/4p or 6.2 percent to 123p. The life sciences investment firm said that one of its listed holdings, Nasdaq’s Autolus Therapeutics (an oncology company), had entered into a strategic partnership with German company BioNTech in order to move both companies’ CAR-T autologous programmes to commercialisation.
On Aim, hardide ended the day at the lowest level in its history at almost 8p. The minnow had a slower start to the new year than expected due to customers destocking. The company that develops coatings for industrial components to extend their life has said it had to ask shareholders for new funding to meet its short-term cash needs and support its expansion strategy.