FTSE 250 movers: TI Fluid slumps; Ithaca in favour

Peel Hunt said on Wednesday that BC Omega Holdco sold 50m ordinary shares in TI Fluid Systems in a placing.

BC Omega Holdco is an entity indirectly controlled by investment funds advised by Bain Capital, LP or its affiliates.

The shares were sold by way of any accelerated bookbuild to institutional investors at 135p each, raising gross proceeds of around £67.5m. The price is a 20.2% discount to the closing share price on Tuesday.

Following completion of the placing, BC Omega will hold just over 141m shares in TI Fluid, which is a stake of around 27.5%.

Peel Hunt acted as sole global co-ordinator and bookrunner in connection with the placing.

North Sea oil and gas producer Ithaca Energy on Wednesday said it was looking at a potential tie-up with Italy's largest energy firm Eni covering its UK assets and reported a slump in annual profits blaming the British government’s energy tax and project impairments.

Ithaca said it had been given a four-week exclusivity period from Eni to make a potential offer for its UK upstream assets.

The company said it will buy Eni UK in exchange for its own shares, with Eni becoming a major shareholder by holding 38-39% of the enlarged issued share capital.

A potential offer for Eni's UK assets includes its recently acquired Neptune Energy assets, but excludes its carbon capture, utilisation and storage and Irish sea assets, Ithaca said.

Buying Eni's UK assets could add a further 40,000-45,000 boe/d to output, taking the total to more than 100,000 boe/d, it added.

Meanwhile, it reported a plunge in full-year profit to $215.6 from $1.03bn. Production came in at 70,239 barrels of oil equivalent per day (boe/d) in 2023, lower than the previous year’s record 71,403 boe/d but in line with guidance of between 68,000 and 74,000 boe/d.

Ithaca said it expected 2024 production in a range of 56-61 kboe/d reflecting a reduction in investment in near-term projects as a direct result of the energy profits levy including deferred or cancelled projects at the Greater Stella Area, Montrose Arbroath Area, Elgin Franklin Area and Alba fields.

“The energy profits levy continues to have a direct impact on investment in the UK North Sea, with projects across our operated and non-operated deferred or cancelled. The extension of the levy by a further year to a sunset date of March 2029, highlights the continued fiscal uncertainty our sector faces," said interim chief executive Iain Lewis.

An investigation into controversial former Endeavour Mining boss Sébastien de Montessus found two more “deliberately disguised” payments totalling $15m to an unnamed third party, the company said on Wednesday.

De Montessus was sacked in January after allegations he instructed the company to make an irregular and unreported $5.9m payment in relation to an asset disposal.

Endeavour commissioned Linklaters and EY to conduct a full probe and released key findings on Wednesday. The report found de Montessus and "certain others" outside the company instigated two payments worth $15m "deliberately disguising them as advance payments to a contractor through repeated false representations to management".

These were delivered to the same party that received the initial $5.9m payment.

It added that no evidence of bribery, or any payments being made to sanctioned persons or to terrorist groups had been found.

The company added that "despite extensive efforts" the investigation could not discover the ultimate beneficiary of the payments, which were made to an offshore entity in Ras Al Khaimah in the United Arab Emirates.

De Montessus has denied wrongdoing about the $5.9m payment and admitted he should have told the board, but claimed the cash was for security services.

Market Movers

FTSE 250 - Risers

Ithaca Energy (ITH) 149.40p 5.06%
Hochschild Mining (HOC) 124.70p 4.35%
Endeavour Mining (EDV) 1,560.00p 3.86%
Hammerson (HMSO) 28.00p 3.17%
Sirius Real Estate Ltd. (SRE) 95.90p 3.01%
Tate & Lyle (TATE) 619.00p 2.74%
Watches of Switzerland Group (WOSG) 348.20p 2.41%
Softcat (SCT) 1,586.00p 2.26%
Helios Towers (HTWS) 92.60p 2.21%
Centamin (DI) (CEY) 110.30p 2.04%

FTSE 250 - Fallers

TI Fluid Systems (TIFS) 142.60p -15.72%
Carnival (CCL) 1,168.00p -3.95%
Wood Group (John) (WG.) 134.30p -2.61%
Crest Nicholson Holdings (CRST) 191.50p -2.20%
Oxford Instruments (OXIG) 2,055.00p -2.14%
Bellway (BWY) 2,634.00p -2.01%
Marshalls (MSLH) 267.60p -1.98%
Bakkavor Group (BAKK) 105.00p -1.87%
Abrdn (ABDN) 141.85p -1.87%
Hill and Smith (HILS) 1,920.00p -1.84%