MARKET REPORT: US private equity pounces on £800m software company

Another London-listed company appears destined to fall victim to US private equity predators.

Learning Technologies, which provides software to help companies recruit and train employees, said it had been approached by buyout firm General Atlantic for an acquisition worth 100 pence a share or £800 million.

The company said it would likely recommend a formal offer to shareholders at that price.

Shares soared 28.2 per cent, or 21.1p, to 96p, but the stock is still trading below its September 2021 high of 236p.

Learning Technologies said the proposal, which follows previous approaches, includes an option for its shareholders to co-invest in General Atlantic’s unlisted acquisition vehicle.

The American private equity firm has until October 25 to announce whether it wants to make an official offer or withdraw.

Green energy company Ceres Power more than doubled its revenue after closing a major deal.

Sales rose to £28.5m in the six months to the end of June, up from £11.7m during the same period in 2023.

The group also recorded record orders worth £46.9m in the first half, taking the total to £103.3m from the start of 2024.

The gains were boosted by a major manufacturing licensing deal announced in January with Taiwan’s Delta Electronics. Ceres will share and license its hydrogen technology to Delta, which wants to start manufacturing fuel cells by the end of 2026 that can be used to power its products.

The London-listed company secured a similar contract with Japan’s Denso in July.

As a result, Ceres reiterated its improved annual revenue forecast of £50 million to £60 million in 2024.

The shares rose 26.6 per cent, or 53.2 pence, to 253.4 pence.

Clean Power Hydrogen’s losses increased from £1.6m to £2.3m in the first half of 2024.

The results came a day after the company reported its “most significant milestone,” as new test results paved the way for the commercial launch of its technology. The shares, which soared 28 per cent on Thursday, fell 4.9 per cent, or 0.55 pence, to 10.65 pence.

In the broader market, the FTSE 100 rose 0.4 per cent, or 35.85 points, to 8,320.76 and the FTSE 250 added 1.1 per cent, or 230.12 points, to 21,240.56.

Prudential has signed a partnership with Indonesia’s sixth largest bank. The London-listed firm will become the life insurance provider for Bank Syariah Indonesia (BSI), which has more than 20 million customers and more than 1,000 bank branches, starting early next year. The shares gained 2.7 per cent, or 18.4 pence, to 700 pence.

Healthcare group Haleon will pay £500m to increase its stake in Tianjin Pharmaceutical (TSKF), its joint business in China, from 55 per cent to 88 per cent. Haleon will also have the option to purchase the remaining 12 percent of TSKF. The shares rose 1.7 per cent, or 6.5p, to 396.6p.

The technology company Big Technologies launched its first share buyback. It will buy shares worth almost £6m from investors. The shares rose 6.8 per cent, or 8p, to 125p.