"A clear case of socialising risks and privatising profits." So writes Liberum Utilities Analyst Peter Atherton in today's (20 Feb, 2014) Spectator magazine. That's his assessment of the UK government's agreement with France's EdF to build two new nuclear reactors at Hinkley Point.
In the article, Peter describes the contract as "one of the worst ever signed by a British government". Why? A cost of £8 billion per reactor, a nine-year construction time and an index-linked power price that suggests EdF could receive as much as £150 per megawatt/hour by 2030 (seven years after the reactors are due to be completed) compared with today's wholesale price of £50/MWh.
Click here for The Spectator article >>
Liberum will be sponsoring a new Spectator power conference in September this year, ahead of the May 2015 General Election.
Email Peter Atherton (below) >>
Shares in Manx Telecom Plc were admitted to trading on AIM today (10/02/2014), followed a placing of 110.1m shares at a price of 142p, raising £156.3m. Liberum is Nominated Adviser and Corporate Broker to the Isle of Man-based telecoms company.
Manx Telecom had a market capitalisation of approximately £160m at the placing price.
Manx Telecom is the leading communication solutions provider on the Isle of Man, offering a wide range of fixed line, broadband, mobile, and data centre services to businesses, consumers and the public sector as well as a growing portfolio of innovative solutions to offshore customers.
Visit the company's website >>
Sales: Jeremy Smith
Research: Will Shirley
Corporate access: Regan Connor
JPMorgan Private Equity Limited (LSE: JPEL, JPZZ, JPSZ), a closed-ended investment company that invests in the global private equity market, has named Liberum Corporate Broker.
The Guernsey registered, London Stock Exchange-listed company's aim is to invest in a diversified portfolio of private equity fund interests and by capitalising on the inefficiencies of the secondary private equity market.
It invests in private equity partnerships and direct investments in Europe, North America and Asia. It has gross assets of $560m, net asset value of $400m and a market cap of $260m.
Company website >>
Corporate access: Regan Connor
Keiron Arnold has joined Liberum as IT Development Manager after three-and-a-half years managing Credit Suisse's credit risk management development team. Prior to this Keiron worked for Investec.
He holds an MSc in Information Systems Development from the London School of Economics & Political Science.
He spent seven years with Computer Sciences Corporation from 1998 to 2005.
Keiron is the latest in a series of appointments at Liberum which has seen Drew Hendrickson join as Senior Sales Trader focusing on the U.S. equity client base, Justin Bates become our analyst covering Specialty and Other Financials and Marcio Remedios join our corporate access team.
Liberum by the numbers
Rockhopper Exploration plc, (RKH.L), a UK-based oil and gas exploration company with a £400m market capitalisation and interests in the Falkland Islands, has appointed Liberum as Corporate Broker. Following a transaction in 2012 with Premier Oil, Rockhopper is fully financed through the development of the major Sea Lion discovery and retains cash for further exploration.
Rockhopper website >>
Equity Capital Markets: David Parsons +44 (0) 20 3100 2125
Labour leader Ed Miliband pledged at the party’s conference on September 24th, 2013 to freeze UK gas and electricity bills for 20 months if it wins a May 2015 general election.
In this presentation made at a Cornwall Energy conference in London Thursday, Liberum Utilities analyst Peter Atherton reviews the impact of that commitment.
His colleague Mulu Sun contributed to this presentation.
Peter Atherton >> +44 (0) 20 3100 2088
Click for 18-page PDF >>