BARGAIN BASEMENT TAKEOVER: H&T Now Latest Target in Series of Acquisitions
Taking Their Coins Across the Pond: H&T Group's Blockbuster Deal
H&T Group, the UK's leading pawnbroker known for its jewellery and watch loans, has called it quits after 19 years on London's AIM market following a £297 million takeover by U.S.-listed FirstCash. This deal fits the pattern of overseas buyers snapping up undervalued UK small and mid-cap companies.
The sweetened offer of 661p per share, a 44% premium to the close before the deal, has sent H&T's shares soaring by 42% over the last week. The deal includes a 650p cash payment and a final dividend of 11p due in June.
The move underscores a broader trend, with foreign investors scooping up UK assets, especially beyond the FTSE 100, where valuations remain a bargain compared to historical averages. It's a buying spree, and smaller companies are the target.
Tracing its roots back to 1897, H&T has become a familiar face on British high streets. The board, confident in the company's standalone prospects, nevertheless cited uncertain gold prices, mounting costs, and sluggish consumer sentiment as persistent challenges.
The deal hasn't only been positive for H&T shareholders. The AIM All-Share added 1.5% this week, returning to levels not seen since December 2024. The FTSE 100 also rebounded, clawing back losses following U.S. President Trump's tariff offensive.
Another winner in the midst of this gold rush is Metals One. After confirming the acquisition of the Swales gold project in Nevada, shares have surged by 69%. That's a more than doubling of the investment for anyone who bought a month prior.
Belluscura, makers of portable oxygen tanks, had a stellar week, with no apparent trigger. Despite reporting record April sales and launching a strategic review, the company's shares soared by 52%. Belluscura clarified that it wasn't shopping itself but is exploring strategic investment, partnerships, and alternative funding structures.
Polarean Imaging posted a 35% gain after highlighting its collaboration with Philips, aiming to broaden the use of Polarean's Xenon lung MRI technology in children with chronic obstructive lung disease, subject to regulatory approval.
On the flip side, Empyrean Energy plummeted by 75% after halting operations at the Wilson River-1 well in Queensland.
Mirriad Advertising saw a 35% dip despite raising £1.6 million, resolving its immediate funding needs, thanks to issuing new shares at a discount.
Lastly, Solvonis Therapeutics raised £2 million in quick succession, spearheading the transformation of the former polymers specialist into a clinical-stage drug developer focused on post-traumatic stress disorder and alcohol abuse. With Professor David Nutt, former government drugs adviser, leading the pack, the company's future looks promising.
The scene remains bustling in mid and small-cap investing. For updates, head to www.proactiveinvestors.co.uk.
As always, happy investing! Just remember - it's a roller coaster ride, mate!
(Enrichment Data: This trend of overseas buyers targeting undervalued UK assets indicates a broader market interest in real estate and niche sectors in the UK, driven by global economic uncertainty and the UK's stable legal system and global city status.)
Foreign investors continue to show interest in UK's small and mid-cap businesses, particularly in the real estate and niche sectors. This is evident with H&T Group's property business being acquired by FirstCash, a move that signifies investing opportunities in these undervalued assets.
The trend implies a broader global economic interest in UK's robust legal system and status as a global city, providing attractive opportunities for foreign investors in various business sectors.
