Wall Street Journal: Shell in Early Talks to Acquire Rival BP
A deal would be a landmark combination of two supermajor oil companies; Shell dismisses the Journal’s report as ‘market speculation’
Comment: It has been a traditional part of the M&A game that if a story leaks, the deal is off. What could happen next with BP/Shell is that after a discreet period of time (hours, days or weeks), there is indeed confirmation of what would be a massive and welcome deal for the London market.
Stock Focus: Boku (BOKU) “Ripe For Takeover”
While BP/Shell may at least temporarily have had cold water poured on it, those looking for a fresh M&A contender need perhaps look no further than Boku. The last we heard from Boku, the global network for localised payment solutions, was that it had promoted Leila Kassner to Chief Operating Officer in April. This was significant as the company was clearly looking to build on its latest 20% organic growth, $99.3 million revenue, and processing $12.4B in transactions. The sizzle here is that the company, which has a £572m market capitalization, is in its global partnerships, with the likes of Amazon, Meta, Microsoft and Netflix. Rather than being a client of Boku, it would be perfectly logical for one of the Magnificent Seven to simply takeover Boku, which has no debt, and a significant cash pile of £177m. Indeed, the Daily Mail highlighted this very point in March, suggesting that the company was “ripe for takeover”. Given the relative undervalue of the company (half a billion is nothing these days), and the unique technology riding the death of cash, one would be looking for M&A sooner rather than later. Indeed, the technical of the share price underline this, with the shares bouncing off March/April support under 150p, and now at key resistance near 195p. This implies that traders have been buying into this situation since the tariff dip for the markets in the spring. The overall pattern is that Boku shares are within a rising trend channel in place since mid 2022. The top of the channel is heading for 230p, which could be seen as soon as the end of next month on a weekly clearance of 195p level. The situation is helped by a golden cross buy signal between the 50 and 200 day moving averages. Whatever happens, the 180p zone is providing support.
Smarter Web (AQSE:SWC) said that with a high level of demand the Bookbuild and Subscription has raised approximately £41.2 million, well above the stated minimum of £30 million at £2.90 per share. The Offer Price was at the closing bid price on 25 June 2025.
Comment: The strategy of raising until either you or the share price drops is very much in place at SWC, although perhaps the strategy investor who went in with nearly £4m at 495p earlier in the week, versus the £2.90 level now may be consoling themselves with a stiff glass or two of whisky.
Poolbeg Pharma (POLB) announced that Roaring Waters Capital are in on the shareholder register at 5.74%.
Comment: It has not exactly been a smooth ride at POLB in the recent past, with widened losses and an abortive M&A deal. But with the share price near the lows our friends at Roaring Waters may be correct in their share purchase.
Cooks Coffee Company (AQUIS:COOK), the international coffee focused café chain, announced the publication of the Company’s Annual Report and Financial Statements for the year ended 31 March 2025. Group revenue was up 43% at NZ$6.7m v NZ$4.7m in FY24. This includes NZ$1.0m of sales through the Dairygold stores for the 3.5 months from mid December 2024. Like for like revenue (excluding Dairygold sales) was $5.7m, an increase of 22.1%.
Comment: With it being possible to pay nearly 5 quid for an iced latte, it is not that surprising that COOK has managed to improve all the key metrics. This underlines that there is still demand and capacity in what one would have thought is an increasingly crowded space.
Andrada Mining Limited (ATM), a critical minerals producer with mining and exploration assets in Namibia, is pleased to announce that it intends to raise up to £4.5 million through a proposed strategic equity subscription by a new investor, Talent10 Resources Proprietary Limited , and simultaneously conduct an accelerated bookbuild through H&P Advisory Limited to raise an additional £1.5 million from new and existing institutional investors.
Comment: It has taken some degree of skill and talent to keep a lid on the share price of such an A grade company, but somehow this has been achieved. The chance to get a proper market cap / appreciation should not be missed after this latest fundraise.
Cake Box Holdings (CBOX), the UK’s largest retailer of fresh cream celebration cakes, confirms the new timings for the presentations to investors and analysts relating to its Full Year results for the 52 weeks to 30 March 2025 to be released on Tuesday 15 July 2025.
Comment: If nothing else, we are all dying to know how the company is going in the aftermath of the £22m Ambala, Indian sweets deal in March.
Gelion (GELN), the Anglo-Australian battery innovator, reported continued strong progress at its wholly owned subsidiary, Battery Minerals Ltd, as it advances the development of the novel lithium-ion (Li-ion) battery recycling technology. This proprietary technology is based on a process originally developed at Johnson Matthey and builds on the patent and technology package acquired by Gelion in March 2023.
Comment: Although the battery space is supposed to be the new rock and roll, especially with relation to the Net Zero rip off, it has not quite captured the imagination of the stock market – yet.
Ariana Resources (AAU), the AIM-listed mineral exploration and development company with gold project interests in Africa and Europe, announced an updated economic model and Strategic Options Study for the 100% owned Dokwe Gold Project in Zimbabwe. Revised Dokwe North Pre-Feasibility Study economic model on Reserves at a gold price of US$2,750/oz provides: Net Present Value of US$354 million.
Comment: Given the ongoing unfortunate blogging coverage the company continue to get, there is no surprise that even in the biggest gold market ever, the share price, and the perception of the company continues to flounder.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
