Business Grapevine

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The Welsh Government has begun a recruitment drive in an attempt to fill 201 medical vacancies at the health board, which runs hospitals in Swansea and Neath Port Talbot. The campaign will focus on the advantages of living in the country and working for the Welsh NHS. The campaign will promote the unique values and opportunities Wales has to offer to doctors, both in a professional and lifestyle capacity. A shortage of doctors means that existing staff and the recruitment of locum doctors are relied on to ensure the continuation of safe and best-quality care to patients In the region there are 12 consultant vacancies and five junior or middle grade doctor vacancies, not including jobs which have already progressed to short-listing and interviews, or it has been unable to fill. It is speculated that, in addition to the difficulties to recruit senior medical staff, changes to post-graduate medical training risk making fewer doctors available.

The oil and gas company is increasing its graduate recruitment by 50%, creating nearly 250 vacancies annually. The company, one of the UK’s biggest graduate recruiters, is creating these positions in addition to its 130 summer and one-year paid internships. The company’s significant rise in vacancies has been attributed toan increase in demand from its business units to recruit the brightest young minds in the UK Last year was one of the strongest years in the firm's history in terms of accessing new areas for exploration. The graduate vacancies have steadily increased in recent years, and new positions will be available across multiple departments. Applications are currently closed for this year and will re-open in September for 2013. Emma Judge is head of UK graduate recruitment for the company.

The home care firm headquartered in Warrington, which has been operating in Burton and East Staffordshire for more than 18 months, is to create 30 new jobs following a sharp increase in demand for its services. The new roles will be created in Staffordshire throughout 2012. Services are tailored to the needs of individuals and range from companionship and light housekeeping to convalescence care and shopping. Further information about the vacancies is available by calling 01283 539917 or by visiing the website www.homeinstead.co.uk/burton.

The company, which currently has its worldwide base for garden and lawn products in Stowmarket, is moving into the old Hopgoods furniture store in Gipping Way. Refurbishment for the move was granted planning permission in July last year by Mid Suffolk District Council and work is due to begin at the end of February. The company is expecting to employ an extra 100 technically skilled engineers at the new state-of- the-art research and development centre.

Underlying fourth quarter earnings at Anglo-Dutch integrated oil behemoth Royal Dutch Shell came in below expectations. Net income on a current cost of supplies (CCS) basis, excluding various exceptional items such as gains from divestments and fair value accounting adjustments, rose to $4.8bn from $3.1bn the year before, but were below the $5.2bn the market was expecting. Adjusted basic CCS earnings per share (EPS) climbed to 78 cents from 67 cents in the fourth quarter of 2011 but fell back from the third quarter's $1.12. Full year CCS earnings on the same basis (i.e. excluding exceptional items) surged to $24.7bn from $18.1bn in 2010. Adjusted basic full year CCS EPS grew to $7.94 from $5.90. The downstream (refining) business lost money in the fourth quarter, posting a CCS loss of $278m, versus CCS earnings of $482m the year before. The upstream business remained in rude health, boosted by soaring oil prices, and clocked up CCS earnings of $5.11bn, up from $3.44bn the year before. "Our fourth quarter results were impacted by a sharp downturn in industry refining margins and North American natural gas prices," said the group Chief Executive Officer, Peter Voser, who added that the global economy and energy markets are likely to see continued high volatility. Oil products sales volumes decreased by 8% compared with the same period a year ago as a result of portfolio divestments and weakening global demand. Excluding the impact of divestments and the effects of the formation of the Ra joint venture, sales volumes were 4% lower than in the same period last year. Refinery intake volumes decreased by 11% compared with 2010, mainly as a result of portfolio divestments and refinery closures. Excluding portfolio impacts, refinery intake volumes were 2% lower compared with 2010. Refinery availability of 92% was in line with 2010. Improved upstream earnings reflected higher liquids and natural gas realisations. Earnings also reflected higher liquefied natural gas (LNG) realisations, increased LNG sales volumes and higher dividends from an LNG venture. These items were partly offset by lower liquids and natural gas production volumes, higher depreciation and increased exploration expense. Fourth quarter 2011 production was 3.305m barrels of oil equivalent per day (boepd) compared with 3.496m boepd a year ago. Excluding the impact of divestments of some 90,000 boepd, fourth quarter 2011 production was 3% lower than in the same period last year. Cash flow from operating activities was $6.5bn for the fourth quarter 2011 and $36.8bn for the full year. Excluding net working capital movements, cash flow from operating activities was $7.2bn for the fourth quarter 2011 and $43.2bn for the full year. As previously announced, the fourth quarter dividend will be $0.42 per share and $0.84 per American Depositary Share (ADS). Shell's quarterly dividend has been fixed at that level since 2009 but the company indicated that it will ratchet up the pay-out to 43 cents per share (86 cents per ADS) in the first quarter of the current financial year. Broker Charles Stanley had suggested the company might be a bit more generous and push the quarterly pay-out up to 44 cents. With 2011 production of some 1.2bn barrels of oil equivalent (boe), Shell's headline proved reserves replacement ratio for the year is expected to be around 100%. The organic reserves replacement ratio, which excludes the impact of oil price movements in the year, acquisitions and divestments, is expected to be around 120%. At the end of 2011, total proved reserves are expected to be around 14.2bn to 14.3bn boe, in line with the end of 2010, after taking into account 2011 production. As a consequence, Shell's reserves to production ratio is expected to remain around 12 years at the end of 2011, in line with the end of 2010. The group set out what it termed a new growth agenda, which included proposed net capital investment of $30bn in 2012, more than four-fifths of which is earmarked for upstream operations. Divestments are expected to be in the $2bn to $3bn range in 2012, adding to the $17bn of asset sales completed between 2009 and 2011, inclusive. source sharecast

The Peterborough-based securities services subsidiary of the French bank, is being wound up. Approximately 140 employees are currently based at its office in Lynch Wood, Peterborough, and it is hoped to reassign them elsewhere within the group where possible. BNP Paribas Securities Services has been in discussions with a partner to acquire its retail services business in the UK. Despite months of negotiations it has not been able to reach a commercial agreement and will exit the business. The bank has had a presence in the UK for 130 years and London is the bank’s second global headquarters. The group has a total workforce of about 8,000 in the UK including its subsidiaries.

The food group headquartered in Tralee, Ireland, is to consult staff over the planned closure of its Grimsby plant, blaming market conditions. The company has stated it would close the site by the end of April if an alternative could not be found as a result of the 90-day consultation. Its major markets are chilled convenience foods in the UK and Ireland. The group has begun a review of its frozen ready meals business due to the competitive pressures within the industry. Recent market conditions have resulted in lower factory throughput and reduced sales across most of the major accounts. The group bought the plant in February 2011 from Headland Food and kept on the workforce, which is in the region of 340. The Group employs over 20,000 people throughout its manufacturing, sales, technology and application centres across Europe, North America, South America, Australia, New Zealand and Asian Markets.


Mergers & Acquisitions

Bid speculation seems to permanently surround financial software provider and it appears that there is no smoke without fire, as the group has confirmed it is in talks with a suitor. The group said it is in preliminary discussions with Temenos Group, a Swiss provider of banking software, regarding a possible strategic combination to be effected by way of an all share merger. Founded in 1993, and listed on the Swiss stock exchange, Temenos serves over 1,500 financial institutions in more than 125 countries across the world. The company has long been seen as a natural partner. In the final week of January, the firm disappointed the market with its interim results, in which it said customers were taking longer to pull the trigger on new contracts. source sharecast

The specialist bank and asset manager saw assets under management (AUM) nudge slightly higher in the nine months to December 31st, helped by its recent acquisition of Evolution. Nevertheless, the firm did admit that the third quarter has been a challenging one due to the volatile markets and low levels of activity. Operating profit before goodwill, acquired intangibles, non-operating items and taxation and after non-controlling interests was 5.6% behind the prior year in the nine-month period. "The asset management and wealth management businesses continued to see net inflows however overall assets under management pre the acquisition of Evolution Group plc declined," the statement said. Third party AUM rose by 1.9% to £90.6bn in the first three quarters, up 8.2% on a currency neutral basis. This included a £6.9bn gain from Evolution. The Specialist Banking business saw both margin and fee income grow but earnings from principal activities fell substantially, the group said. Meanwhile, customer accounts (deposits) fell 0.7% to £24.3m, and core loans and advances were 3.2% lower at £18.2bn. As of December 31st, the group had £9.5bn in cash and near cash available. source sharecast


Mergers & Acquisitions Grapevine - M & A - One Year Subscription
Mergers & Acquisitions Grapevine is a weekly digest of M & A activity within the UK. It covers the past week, but is updated daily. It is a source of accurate and reliable information concerning UK Mergers & Acquisitions activity. The Mergers & Acquisitions Grapevine service contains much more than the standard free service, a sample of which is provided on this page, and is ideal for companies that wish to remain well informed about Mergers & Acquisitions, as well as those companies that would like to offer their products, services or consulting skills to organisations experiencing significant corporate changes. Companies undergoing mergers, performing acquisitions or divestments would obviously fit this description.

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A subsidiary has received regulatory approval for its farm-out agreement with sector giant BP in block 2714A offshore Namibia. The agreement between Enigma Oil and Gas Exploration and BP, first announced on August 8th 2011, has now received full approval from the Ministry of Mines and Energy in Namibia. BP said it will cover the cost of drilling the first exploration well in this block as well as past costs incurred, which have now been received by Chariot. The operator, Petrobas, owns 50% of the Sourthern Block 2714A, while BP and Enigma have a 25% interest each. "We are very pleased to have concluded this agreement with the support of the Ministry of Mines and Energy in Namibia," said Chief Executive Officer, Paul Welch. "We can now push forward with our drilling campaign on Kabeljou-1 using the additional knowledge and experience of our new partner, whilst reducing our capital and risk exposure," he said. source sharecast

The pubs group which lost out to Greene King last year in a bid battle for the Capital Pub Company, is beefing up its estate with the purchase of 15 freehold tenanted pubs from cash-strapped rival Enterprise Inns. It is paying £22.9m in cash for pubs which in aggregate generated operating profits of £1.7m in the year to September 30th, 2011. The acquisition is expected to immediately enhance earnings. The pubs had a balance sheet value at the end of September of £18.4m. The acquisition will extend its reach, predominantly a London-based operator, into areas of the west and south east of England where it has previously been under-represented, while building on its presence in core trading areas such as Hampshire. "This deal will take the total number of pubs acquired in the last 12 months to 29, giving the business tremendous momentum as we head towards the summer of 2012," claimed Simon Emeny, Group Managing Director. source sharecast

The Norwich-based production company has bought EPIC studios from Norfolk County Council for an undisclosed sum. The high-definition TV studios are among the most advanced in Europe. The take-over of the studio facility on Magdalen Street, Norwich, could secure 30 jobs in the next six months. The council bought the site in 2006 with EEDA funding, after Anglia TV pulled out. In the past, the main EPIC studio has been used for recordings of Trisha, Graham Norton, Vanessa Feltz and the children's show Knightmare. The new owner wants to take the vision the council's had for the last four years and take it forward. The company has 20 years in the broadcast industry, and lists Top Gear, the World Rally Championship and Sport Relief among its clients. EPIC in Norwich is one of the most advanced broadcast production facilities in Europe, hiring HD studios and post production facilities to broadcasters and production companies.

The world's biggest mining company, has announced $917 million in pre-commitment funding for the construction of an outer harbour facility for its Western Australia iron ore operations. The money, of which BHP will provide $779 million, will go towards feasibility studies and for dredging to begin, subject to the necessary regulatory approvals. The company is also undertaking engineering studies to match mine and rail expansions to the expanded port. The first phase of the outer harbour would include the proposed construction of a four kilometre jetty, a four-berth wharf, 32 kilometres of dredged departure channel and landside infrastructure, including stockyards and a rail spur. Start-up would be in the first half of 2016. BHP's iron ore boss, Ian Ashby, said of the funding commitment: "This investment is an important first step in providing the infrastructure to allow us to fully develop our world class resource base in the Pilbara. The development of the outer harbour is pivotal for our longer term growth objectives and this initial funding is rapidly turning those plans into a reality." source sharecast

Industrial property firm and Moorfield Real Estate Fund have together, through their recently established joint venture (JV), completed the acquisition of the UK Logistics Fund from Hermes Real Estate Investment Management, Legal & General and LaSalle Investment Management. The move marks a significant step in the JV's intention to focus its portfolio on the highest quality assets in the strongest markets, including an intention to expand its portfolio of logistics assets under management. source sharecast

The two Anglo-Australian giants of the mining sector, Rio Tinto and BHP Billiton, have been doing a spot of trading that will see Rio gain majority control of South African miner Richards Bay Minerals. Rio is to acquire BHP Billiton's 37% stake in the South African mineral sands mining and processing operation, taking its holding up to 76%. The final consideration for the acquisition will be determined through a previously agreed valuation process. source sharecast

The online gaming group has signed an agreement with US firm Caesars Interactive Entertainment (CIE), in the company's first US online betting deal. Under the agreement, Dragonfish, its independent business to business arm, will power a selection of CIE's established and recognised poker brands. The partnership comes ahead of regulatory change expected in US gambling laws, which would permit specific kinds of online gambling. Chief Executive Officer Mitch Garber said: "the firm has been successfully driving the World Series of Poker brand in the UK for the past three years, and with current momentum toward either a Federal or State by State regulatory environment, 888 is uniquely positioned to support either outcome, without delay." The firm added that believes it has a strong platform to sign with further potential US partners. source sharecast

Norwich-based insurance giant is to reduce its presence in eastern Europe as it continues with its strategy of focusing on markets where it has strength and scale. The company is to sell Czech Life, Hungary Life and Romania Life & Pensions to US life assurance firm MetLife. The multiple sale, which is subject to regulatory approvals in each jurisdiction, is expected to be completed during 2012. The combined net assets of the businesses were approximately €57m at June 30th 2011. Group Chief Executive Andrew Moss said: "This transaction is another step to further focus the group on our priority markets." source sharecast

The British Gas owner is to pay ConocoPhillips $223m for its non-operated interests in the gas- and oil-producting Stratfjord field (and associated satellites) in the North Sea. "Increasing our stake in Statfjord marks the latest stage in our drive to secure high quality sources of gas for our customers, adding both earnings and long-term value," said Managing Director Mark Hanafin. The fields are located across both Norwegian and UK sectors of the Northern North Sea and produce gas for the UK market. The transaction takes the firm's interest in the field from 19.13% to 34.3%. The acquisition adds additional reserves of 36 million barrels of oil equivalent to Centrica's portfolio. The resulting net increase in production will be over 11,000 barrels of oil per day. "The acquisition, which follows our announcement last year of a new 10-year gas supply deal with Norway and acquisition of assets from Statoil, underlines our commitment to invest in North Sea production and secure future energy supplies for the UK," Hanafin added. The firm said that £200m of field development costs will be required in order to "maximise the long-term recoverable reserves". The acquisition is expected to be earnings- and cashflow-enhancing immediately. source sharecast

The translation software firm has bought marketing analytics firm Alterian for £69.7m. Alterian's software allows clients to monitor what their customers are interested in by analysing what they are looking at, and for how long, The firm hailed the deal as "an excellent strategic fit", combining Alertian's marketing analytics, campaign management and social media capabilities with its own web content management, e-commerce and structured content products. "With the acquisition of Alterian we now have the ability to understand much better what our customers want," said executive chairman Mark Lancaster. "Adding Alterian's technology will provide customers with a superb integrated solution for managing customer engagement and improving customer experience." source sharecast

The firm will raise £50m through a share placing to finance its potash project in York through to the end of a definitive feasibility study. Russell Scrimshaw, the Chairman, has indicated his intention to subscribe for approximately £3.4m of the new shares. The firm bought the York project in January 2011 and says since then assay results have been "better than expected". The proceeds from the placing will be used to drill perhaps as many as 8 additional holes with a view to making a maiden resource announcement in April this year. source sharecast

Officials at the construction engineering firm have announced the award of a new contract in the Nottingham area. Under the terms of the agreement, the firm will undertake the design, supply, installation and commissioning of circuit cable carrying 132 kv over a 13 kilometre length.

The construction firm has announced a contract to build high quality student accommodation in the Bristol area. Chris Pape, Southern building chief, stated “We welcome the unique challenge that the transformation of the Bristol Pro-Cathedral will provide for Vinci Construction UK. Drawing on all of our experience, we will work closely with client Student Castle to ensure that all works are finished to the highest standard on this unique building.” The work is estimated at a value of £12M.

The construction firm has announced the award of a new rail viaduct construction between Swindon and Gowerton at an estimated cost of £16M. Under the terms of the agreement, the firm will design and then build a new viaduct which will have capacity for 2 tracks. When complete the new facility will allow 2 extra trains to pass through each hour between Llanelli and Swansea and one more every hour between Swansea and Llanelli.

The safety seal manufacturing company has announced a new contract to provide seals to be used at a wind farm construction. The seals wil be used on over 164 cranes being put into service at the Gwynt y Mor windfarm off the Irish Sea. Managing director Graham O’Hare stated “The wind farm sector is a key growth market for us. Our depth of experience and expertise means we are now becoming a wind industry standard. We are determined to build on this and really grow in the sector over the next decade as billions of pounds of investment is ploughed into it in the UK and across the world."

The distribution specialist has announced a major contract award with Musto, outdoor clothing retailer. Daniel Ennor, Commercial Development Director, stated “With such a large range of products and large geographical span of commercial operations, a firm like Musto needs to know that it has the sort of supply chain processes in place to cope with almost any eventuality in the UK and overseas. Just as its reputation has been founded on the development of new, sport-specific clothing, GFS has become recognised for creating a way of working with a number of different carriers and clients to ensure a more efficient and reliable means of distribution.”