|Bid||1,190.00 x 0|
|Ask||1,190.00 x 0|
|Day's range||1,180.00 - 1,260.00|
|52-week range||20.62 - 2,150.00|
|Beta (5Y monthly)||0.53|
|PE ratio (TTM)||18.24|
|Earnings date||19 May 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||16 Jan 2020|
|1y target est||1,741.25|
Feedr, the food tech startup that delivers personalised meals to office workers as an alternative to companies setting up their own canteens, has been acquired by Compass Group, the publicly-listed foodservice company. Compass Group says the purchase of Feedr will help accelerate its digital transformation, and -- amidst the coronavirus crisis -- form part of its "return to work" strategy. Specifically, it plans to utilise Feedr’s software across its portfolio of corporate clients in the U.K. and Ireland, with further potential applications of the technology in education and healthcare sectors.
(Bloomberg Opinion) -- Britain’s FTSE 100 index has experienced its first rapid-fire share sale that includes retail investors. If technology can allow Compass Group Plc to include small shareholders in a 2 billion-pound ($2.5 billion) fundraising — by selling to them via an app — other companies will feel the pressure to follow. The role of the investment banks as gatekeeper to the big equity deals is gradually being chiseled down.Compass is in the catering business, a corporate casualty of the Covid-19 crisis. Its underlying revenue dropped nearly 50% in April. The group is seeking to raise more than 10% of its current market value to cut its too-high debt. That would normally oblige it to do a time-consuming and expensive rights offer, making shares available to all of its existing shareholders to protect them from dilution.But the British rules were relaxed in April and companies like Compass can now sell shares to whomever they like, which has usually meant the institutional investors they know best. That has been controversial as existing small shareholders have been getting diluted with no chance of doing anything about it.Compass’s tiny retail offering in its new fundraising — capped by regulators at 7 million pounds — makes no difference to whether it will raise the 2 billion-pound target. But it respects the principle that small shareholders have the same rights as big ones.The deal nevertheless underscores the oddities of the current regime. First, the retail part of the sale isn’t for existing shareholders exclusively. In that sense, it just mirrors the main offering to institutional investors. It doesn’t prevent new shareholders from diluting existing ones, it just provides a new distribution channel.The small size of the offering limits the number of people who might get burned if the shares fall later. But either the offering is suitable for retail, in which case the cap is perhaps illogical, or it is not. Placings like these appear superficially advantageous for those involved. After all, the terms need to be attractive versus buying in the market otherwise there would be no point in anyone participating. And if retail investors can buy shares in the market, then it’s logical to let them buy shares in a placing.The danger is that hype builds around these deals and the shares, often sold cheaply, end up being seen as a one-way bet by naive investors. The reality is that the companies raising equity in a hurry right now are doing so mainly because they’d be in difficulty otherwise. The performance of the stock sold in these types of placings has been very variable. But the direction of travel is clear. Technology is wedging itself into the process of selling shares and allowing broader participation and a fairer distribution of dilutive stock. That will benefit smaller institutional shareholders and family offices as well as retail investors. For the big investment banks, their role will gradually become more about giving good advice ahead of these deals and less about shifting the shares.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Compass Group Plc is considering raising about $2 billion in new equity to help navigate the coronavirus pandemic, in what could become the U.K.’s biggest share sale this year, people with knowledge of the matter said.The world’s biggest catering services provider is speaking with advisers about a potential stock offering, the people said, asking not to be identified because the information is private. The U.K.-based firm is considering selling shares equal to roughly 10% of its issued capital, the people said.Compass could announce the fundraising as soon as next week, the people said. Its shares have fallen 42% in London trading this year, giving the company a market value of about 17.3 billion pounds ($21 billion). The benchmark FTSE 100 Index has declined about 23% over the same period.“We continue to evaluate the merits of a range of options that would further increase our resilience through the current situation and enable us to continue to invest in the business,” Compass said in a London regulatory filing Friday. The company hasn’t decided whether to proceed with a capital raise, and the timing and size of any deal still need to be determined, it said. An equity offering by Compass could become the largest in the U.K. this year, surpassing events manager and publisher Informa Plc’s 1 billion-pound offering last month, according to data compiled by Bloomberg. It would join companies including insurer Hiscox Ltd. and online fashion retailer Asos Plc in seeking to sell new stock since the outbreak of the coronavirus pandemic.Compass runs corporate cafeterias and serves food at schools, hospitals and sports stadiums. The company’s customers include Bank of America Corp., Coca-Cola Co. and Google, according to its website.The company said last month it is suspending dividends and about 55% of its business is closed due to lockdowns in various countries. Chief Executive Officer Dominic Blakemore has temporarily taken a 30% reduction in salary, while the company’s board members and executive committee have reduced their compensation by 25%. Compass has also secured waivers on covenants from holders of its U.S. private placement debt, it said in Friday’s statement. Compass employs around 600,000 workers and serves 5.5 billion meals annually at more than 55,000 client locations, its annual report shows. It also provides other support work like cleaning, facilities management and reception services.(Updates with company statement from fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
By John Jannarone From Peloton Interactive Inc. to Netflix, Inc., companies offering at-home technologies to keep people busy, healthy and entertained during the lockdown have thrived. The latest high-tech offering: a fully-automated indoor farm for greens and herbs, all housed within a sleek case the size of a bookshelf. Farmshelf, which currently sells a professional […]
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