CITY WHISPERS: Advent’s £5bn bonanza after Cobham sale and cannabis firm’s medical plans
The sale of another bit of Cobham means its private equity owners will have made more than £5 billion from flogging parts of the defence and aerospace group since its takeover.
Quite the return on investment for US-based Advent International – which later swooped on another mid-capper, Ultra Electronics – after it took Cobham over in 2019 in a £4 billion deal.
But while private equity predators might be popping open the champagne, it rather dragged the issue of foreign takeovers back into the spotlight.
Frenchfirm Thales bought Cobham Aerospace Communications in a £850m deal
This was exactly the type of slice-and-dice management style many in the defence industry and Westminster warned of when the buyout was being examined.
The latest sale – to France’s Thales – will automatically be screened under the National Security & Investment Act, introduced in 2022.
At Whispers’ most recent count, the Government has used the legislation to intervene in or block just 16 deals. Still, 16 has to be better than nothing.
Government annoys with Great British Nuclear delay
There were more than a few eyerolls when the Government delayed the launch of Great British Nuclear.
A fancy event at London’s Science Museum on Thursday was cancelled due to ‘11th hour’ talks between the net zero department and the Treasury, according to reports.
It was expected to set out the plans for the industry body and how it will help the UK reach its climate targets. The launch may only have been delayed for a short time.
But apparently potential international attendees are hoping there is a good online link to watch remotely.
Some who were meant to come last week are livid after struggling to rebook or get refunds for their flights, industry insiders say, and would rather not commit again.
Baillie Gifford axes its British Smaller Companies fund
There was a mixed reaction in the City last week when Baillie Gifford axed its British Smaller Companies fund. But for brokers at SP Angel, it was an opportunity to air a grievance.
‘While it might be considered rude to comment on the poor performance, Baillie Gifford’s policy of keeping analysts waiting outside company meetings was also pretty rude,’ SP Angel said in an email. Ouch.
Oxford Cannabinoid Technologies may move into oncology
Things have gone rather quiet at Oxford Cannabinoid Technologies (OCT) since a boardroom bust-up that pitted a co-founder against current management was resolved and tided over.
The group – backed by rapper Snoop Dogg through his venture capital fund Casa Verde – specialises in designing pain therapies using the non-psychoactive compounds from cannabis plants.
There are a host of treatments in the pipeline.
But Whispers hears that OCT could be about to announce a move into another area – oncology.
Data suggests there is potential to make a cannabinoid-based medicine that could be taken at home as a tablet to treat solid cancer tumours, apparently. A lofty goal.
