Imagination, Diageo and James Latham

“Blue-chips were down in early trading following mixed performances on Wall Street and in Asia with investors looking ahead to a raft of PMI data out in the eurozone and the US. Uncertainty over Brexit continues to weigh on sentiment,” says AJ Bell Investment Director Russ Mould.

“Imagination Technologies’ shares jumped after the group put itself up for sale. The group has been courted since announcing it wanted to sell its MIPS and Ensigma operations at the beginning of May. The sale process for these business is progressing well and indicative proposals have been received for both but the board has now decided to start a formal sale process for the whole group and preliminary talks with potential bidders have begun. Imagination’s shares were up by more than 20.4% in early trading.

“Drinks giant Diageo is boost its position in the tequila market following a definitive agreement to acquire Casamigos, the fastest growing super-premium tequila brand in the US. Diageo will aim to expand the reach of Casamigos to markets beyond the US to capitalise on the significant international potential of the brand. The deal values Casamigos at up to $1bn, with Diageo paying $700m initially and up to a further $300m based on a performance linked earn-out over 10 years.

“James Latham’s share rose after full-year revenues increased by 6.9% to £198.8m. The specialist panel and timber distributor’s results were buoyed by higher prices resulting from the weakness of sterling against both the dollar and the euro. The group also controlled overheads despite higher volumes through the warehouses and operating profits increased by £1m to £14.2m. James Latham’s shares were up by over 2.9% in early trading.”

These articles are for information purposes only and are not a personal recommendation or advice.