A roundup of some of the North American equities making moves in both directions today
On the rise
GMP Capital Inc. (GMP-T) was up 13.4 per cent on Monday after it announced it has agreed to sell the bulk of its capital markets business to Stifel Financial Corp. (SF-N) in a deal worth approximately $70-million.
Toronto-based GMP will hold on to its U.S. marijuana sector in capital markets, and its wealth management business. In fact, GMP intends to focus almost entirely on wealth management and will attempt to buy the approximately two-thirds share in Richardson GMP Ltd. it doesn’t already own.
In New York, shares of Stifel were down 0.5 per cent.
SNC-Lavalin Group Inc. (SNC-T) increased 1.5 per cent after announcing before the bell that its Atkins business has won a contract to design £1.5 billion of track upgrades for Network Rail in the United Kingdom.
As part of the Central Rail Systems Alliance, alongside Balfour Beatty and TSO, Atkins will support the delivery of upgrade work across London North West, London North East and East Midland routes for the next decade. The contract includes track, crossings, points, and associated overhead lines and signalling.
The company expects it to be worth up to £300 million ($500-million Canadian) in revenue to SNC-Lavalin.
Frontera Energy Corp. (FEC-T) rose 0.1 per cent after it announced the company will be added to the S&P/TSX Composite Index, effective today.
The Toronto-based company is also being added to the S&P/TSX Composite Dividend, S&P/TSX Composite High Dividend and S&P/TSX Capped Energy Index at the same time.
Street Capital Group Inc. (SCB-T) was up 32 per cent after revealing it has an agreement to be acquired by Toronto-based RFA Capital Holdings Inc. in a deal valued at 68 cents per share in cash, representing a total price of about $85-million.
The price is a premium of approximately 36 per cent to the closing price of Street Capital shares on June 14, the company said.
In a research report, Raymond James analyst Brenna Phelan said: “Street Capital was hit particularly hard by both recent regulatory mortgage market reform and heightened competition in the space. Guidance, earnings and EPS forecasts have come down, and the share price has followed. While there were some greenshoots in 1Q19′s results, both funding and capital remained constraints to the growth needed to scale up to profitability. Street’s board undertook a strategic review of alternatives in early 2019, which culminated in a targeted process to solicit proposals with respect to the sale of the company, a private placement in the company or sale of certain assets. We agree with the board’s conclusion that a sale of the company was in the best interest of shareholders at this time, and view the purchase price of $0.68/share or 1.0 times BVPS [book value per share]as fair.”
Pan American Silver Corp. (PAAS-T) increased 1.4 per cent despite announcing operations at its Manantial Espejo, COSE and Joaquin mines in Santa Cruz, Argentina have been suspended following an employee fatality due to a ground fall underground at COSE.
The company said operations will restart in coordination with the authorities and union following a safety assessment.
“We are deeply saddened by this tragic accident and extend our thoughts and sympathies to the employee’s family and co-workers,” said company president and CEO Michael Steinmann.
Boeing Co. (BA-N) rose 2.2 per cent despite suffering a fresh setback on the opening of the Paris Airshow on Monday as its engine supplier announced a delay for the U.S. plane maker’s all-new 777X jet while Airbus launched a rival plane aimed at the middle of the market.
GE Aviation said it had found unexpected wear in a part for the GE9X engine it is making for the 777X, the world’s largest twin-engined jet, forcing a delay of several months while it redesigns and tests the part.
Over the weekend, company executives took turns to apologize for the loss of life in two 737 MAX crashes and pledged to apply lessons of the crisis to future planes.
Tourmaline Oil Corp. (TOU-T) was up 2.4 per cent after revealing it plans to make a normal course issuer bid to purchase up to 5 per cent of its outstanding common shares over a period of twelve months commencing after TSX approval.
“Tourmaline believes that, at times, the prevailing share price does not reflect the underlying value of the common shares and the repurchase of its common shares for cancellation represents an attractive opportunity to enhance Tourmaline’s per share metrics and thereby increase the underlying value of its common shares to its shareholders. Tourmaline will use the NCIB as another tool to enhance total long-term shareholder returns and will be used in conjunction with management’s disciplined free funds flow capital allocation strategy,” the company said.
On the decline
Dream Industrial Real Estate Investment Trust (DIR.UN-T) fell 1.4 per cent after it announced the sale of its properties in Eastern Canada region to KingSett Capital for $271-million before transaction costs, closing adjustments, and debt settlement costs.
The portfolio includes 38 properties, totaling approximately 2.8 million square feet of gross leaseable area as well as a 118,000-square-foot property that was classified as assets held for sale as of the first quarter of 2019.
“This sale of the Eastern Canada Portfolio represents a significant milestone for the trust,” said Brian Pauls, CEO of Dream Industrial REIT. “We plan to utilize the net proceeds from the sale to increase scale in our target markets as we continue to transform, as well as enhance the overall quality and performance of the Dream Industrial portfolio.”
With files from Niall McGee, Brenda Bouw and wires