STOCKS TO WATCH: Could Informa be next prey for FTSE predators?

Will Informa be the first FTSE100-listed company of the year to be targeted by a private equity giant? Or is an industry rival preparing a swoop on the publishing and events company? 

Those are the questions investors are asking themselves as rumours whip around the Square Mile about a possible takeover of Informa, the publisher of titles including Lloyd’s List. 

In 2008, several private equity firms including Providence and Carlyle came together to attempt a buyout of Informa, but the deal collapsed amid the fallout from the financial crisis. 

Since then, Informa has grown substantially. It merged with rival UBM in 2018 to create Britain’s biggest events and publishing firm. 

However, just last year Informa was forced to go cap in hand to shareholders via a £1billion rights issue amid fears for its financial prospects. 

Now, however, the talk in the market is that a mystery predator is working with banks such as Goldman Sachs and Citigroup on a blockbuster £10 billion-plus takeover bid.

Mast Energy secures backing from major player?

Among the small caps, Mast Energy Developments – a tiny reserve power plant specialist – has come into focus amid talk it has secured financial backing from a major industry player. 

Word is a ‘strategic business’ is prepared to lend Mast around £10 million to help the company fund its growth. 

Mast said recently it had bought a gas-powered generation plant in Derbyshire called Pyebridge Power for £2.5million. 

That will take it nine megawatts closer to the 300 megawatts it hopes one day to be generating. 

Buzz around Yourgene Health 

There is a bit of a buzz around Yourgene Health, a molecular diagnostics company. 

Last week the business, which is chaired by serial small investor Adam Reynolds, unveiled final results showing first quarter revenue had risen by 80 per cent to £6million. 

And City gossips claim Yourgene Health could soon see further substantial revenue growth as the company is set to win further major contracts. 

Market practitioners expect a series of broker upgrades if those new contracts come good. 

Rare earth minerals firm Pensana set for loans

With the environment at the top of the political agenda it may not be a surprise to hear that the Government could be about to give the green light to a set of multi-million pound loans to Pensana, a London-listed rare earth minerals firm.

In March, the company said it would receive money from the Government’s £1billion Automotive Transformation Fund. City sources said more detail is about to emerge about the loan.

Earlier this year it emerged that Pensana was looking to develop Western Europe’s first rare earth processing plant, a £90 million separation facility in Hull.

The aim is to produce a sustainable supply of rare earth oxides, used in offshore wind turbines and electric vehicles.