QuotedData’s morning briefing 18 April 2024 – APAX, CVCE, CVCG, HEIT, HOME, PCA, GRP

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In QuotedData’s morning briefing 18 April 2024:

  • Apax Global Alpha (through its interest in Apax XI) is investing about €36m in Zellis Group.  Zellis is leading provider of payroll and HR software solutions to customers in the UK and Ireland and an emerging leader in the global benefits administration software market, serving approximately one third of the FTSE 100 companies. Zellis Group is headquartered in Bristol, with operations in the UK, Ireland, India and the Philippines. Apax sees an opportunity to improve the company’s already strong position in its core payroll offerings by driving growth in the mid- and upper-mid market segments and by acquiring additional HR modules to cross-sell into the customer base. There is also a meaningful opportunity to grow the benefits administration business.
  • CVC Income & Growth’s (CVCE / CVCG) latest tender will be done at €1.0243 for the euro shares and 112p for the sterling shares. Payment for the March 2024 tender will be made on 17 May 2024.
  • Harmony Energy Income (HEIT) says the amount that it is earning from the National Grid ESO’s Balancing Mechanism has been rising this year. It has been helped by more volatile energy prices thanks to the various wind storms that have hit the UK this year. Like-for-like revenue (including Capacity Market revenue) has improved by about 58% from about £45,500/MW/Year (based on the whole of January) to about £72,000/MW/Year (in April month-to-date). There was also an extra boost in February from the Embedded Export Tariff, which is retrospectively awarded to generating assets in certain zones (in the Midlands and South of Great Britain) which exported power during the three half-hourly periods of highest demand during the winter months (November-February inclusive). However, there is no change to the current dividend policy as yet.
  • Home REIT (HOME) has said that it will vigorously defend itself from litigation brought against it on behalf of shareholders by Harcus Parker Limited. A letter of claim alleges that the company, along with certain other parties, provided information to investors which was false, untrue and/or misleading. The company said that it denies the allegations. However, at the same time it added that it intends to bring legal proceedings against parties it considers are responsible for wrongdoing. It has issued pre-action letters of claim to Alvarium Fund Managers (UK) Limited (its former alternative investment fund manager) and AlTi RE Limited, its former investment adviser’s appointed representative.
  • Palace Capital (PCA) said that it was likely to conduct a tender offer after selling a further five properties for £15.3m. Following the sales, the company has cash of £19.5m (net of £8.6m of debt). This is after returning £21.9m to shareholders since July 2022 through its share buyback programme. The recent sales – of Kiln Farm, Milton Keynes for £6.5m; Sandringham House, Harlow for £3.3m; Unit 5, Harnham Business Park, Salisbury for £3.2m; Kings Park House, Southampton for £2.1m; and a small car park in Northampton for £0.2m – were combined 3.7% below the September 2023 valuations. Further properties are currently under offer which, if they all complete in the next few months, will provide additional cash for returning to shareholders.
  • Greencoat Renewables (GRP) says it has signed a 10-year Power Purchase Agreement (‘PPA’) for its Ballybane Phase 1 wind farm, with data centre business Keppel DC REIT. The wind farm has an annual output of 67 GWh of renewable energy, which Keppel DC REIT will buy significantly contributing to its net zero objectives for 2030.

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