Johnson Matthey stock falls after sale
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.SHARES IN Johnson Matthey, the speciality chemicals and precious metals business, yesterday dropped 13.5p to 618p after the group announced the pounds 420m disposal of its electronic materials unit to Allied Signal.
The group, which signalled its intention to spin off the division last November, had been looking to demerge the unit and seek a listing on Nasdaq. But John Sheldrick, finance director, said the sale maximised value and offered shareholders more certainty than a Nasdaq listing.
"The option to do the IPO remained until the last moment but we were advised to wait until next year. We got some good offers and decided this was the best way to go," he said.
The sale puts the company on the buying trail for bolt-on acquisitions and larger businesses, with the intention to focus on the core catalyst and fine chemicals division, which accounts for more than half the business. Mr Sheldrick said talks were under way with a number of private US pharmaceutical materials firms, while larger global prospects were also being looked at.
Analysts said the sale price achieved was not as high as it could have been and reflected the market perception of electronic materials. One said: "It's slightly disappointing on the price but it's a clear-cut sale and it clearly has a number of things in the pipeline to spend the money on."
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments