Fintech firm Glantus Holdings PLC (AIM: GLAN), a UK small-cap, has succumbed to the ongoing trend of take-private offers affecting the junior market.
In recent months, Glantus engaged in discussions with private equity investors, a move that followed a profit warning, falling cash reserves, and an earlier workforce restructuring. This week, the company accepted a £17.8 million offer from Finnish procurement specialist Basware, a deal that valued Glantus at a 67% premium over last Friday’s closing price.
CEO Maurice Healy praised the deal as a “compelling opportunity for shareholders to cash out at a significant premium to recent share prices.” Following this news, Glantus’ stock rallied nearly 60%, hitting an 11-month peak of 33p with a market capitalization of £16.8 million.
The junior market is witnessing a surge in take-private deals, illustrated by recent cases like Numis Corporation’s acquisition by Deutsche Bank, energy group Solgenics, Applied Graphene Materials, and others. This trend has sparked debates on whether AIM retains its role as an effective growth platform for companies, with some suggesting that reduced bureaucracy might help. Critics argue, as highlighted by Proactive Investors, that “burdensome regulation, exacerbated by stringent ESG reporting mandates, has imposed additional costs on firms aiming to list on AIM, many of which have limited resources.”
Global Market Update: China’s economic slowdown is rippling through global equity markets. The FTSE AIM All-Share Index declined by 3% this week. Similarly, both the FTSE 100 and FTSE 350 fell over 3.6%, while the US Nasdaq blue-chip index dipped almost 2%. In the UK, persistent wage growth is fueling calls for additional interest rate hikes. Despite a recent dip in UK inflation to its lowest since February 2022, the current rate of 6.8% is still too elevated for the Bank of England to consider easing monetary policy.
AIM New Listing and Market Movements: In a positive development, Tan Delta Systems PLC (AIM: TAND) saw its shares rise after its AIM debut, with the real-time equipment monitoring and data analysis specialist raising £6 million at 26p per share.
Beacon Energy PLC (AIM: BCE) enjoyed a surge of 39% after an update on its Schwarzbach well in Germany indicated promising oil-bearing reservoirs.
In the renewable energy sector, Hydrogen Utopia International PLC rebounded 18% after dismissing concerns regarding its financial health, while Verditek PLC (AIM: VDTK) in the solar energy field rose by 10.5% after announcing a potential collaboration with Net Zero Valley.
In the mining sector, Pathfinder Minerals (AIM: PFP) saw a 24% increase in shares following the appointment of new Executive Director Paul Barrett.
Notable gains were also seen in the healthcare sector. Abingdon Health PLC (AIM: ABDX) rose by 25% after Tesco announced it would stock the company’s saliva pregnancy test Salistick.
However, some firms faced challenges, with Tern PLC (AIM: TERN) experiencing a nearly 9% drop following its interim results, and Serinus Energy PLC (AIM: SENX) plummeting as much as 31% after revealing lower revenues in its H1 2023 results due to falling oil prices.
Other significant declines this week included Harvest Minerals at 46%, Premier African Minerals Ltd (AIM: PREM) at 30%, and Inspirit Energy Holdings PLC (LSE: INSP) at 19%.
