SMALL CAP MOVERS: Bonhill shares skyrocket on takeover bid

Small-cap B2B media company Bonhill has given its backers little to cheer about but the mood lifted a bit on Friday as a takeover offer arrived following a strategic review.

Shares rose 30 per cent to 7.4p on the news, valuing the company at £8.9million and marking their highest point since April.

Bonhill said the conditional offer had come from a privately-owned UK media company and was worth £6.6million in cash for the assets and trade of its UK and Asia businesses.

Market surge: Shares in small-cap B2B media company Bonhill rose by 30 per cent after it received a conditional takeover offer from a privately-owned UK media company

It was not all good news as Bonhill also revised down its trading guidance with underlying losses of £1.3million now expected this year.

Bid action was also evident at Tanzania-based gas group Wentworth Resources, which jumped over 30 per cent on Monday following an agreed takeover by French oil giant Maurel & Prom at 32.5p per share.

M&P’s offer is worth £61.7million in total and represents ‘a substantial premium to Wentworth’s prevailing share price and offers an opportunity for our shareholders to realise this value in the near term for cash,’ chairman Tim Bushell in a statement.

Another oiler, Mongolia-focused Petro Matad, also had big news sending its shares rocketing 97 per cent to 3p this week.

In an operational update, the AIM-listed firm said progress had been made ‘to register the Block XX Exploration Area as special purposed land.’

Local committees in Matad district had originally voted against the central government’s certification proposal.

However, the Mineral Resources and Petroleum Authority of Mongolia has written to support the licence, with Petro Matad now working towards certification.

‘It has been a frustrating year for Petro Matad and our shareholders given the lack of progress on the land access issue in Block XX,’ said Mick Buck, chief executive.

‘We are hopeful that we are now reaching a new phase in the process with central government recognising that it needs to bring this access issue to an end through direct action.’

Novacyt jumped 17 per cent to 82.4p after receiving approval for its latest Covid PCR test in the UK.

The Anglo-French biotech now has seven PCR tests added to the Coronavirus Test Device approvals register.

‘This latest approval ensures we are well-positioned with our consolidated COVID-19 portfolio for any potential future outbreaks,’ said acting chief executive James McCarthy.

AfriTin Mining meanwhile rose 5 per cent to 4.2p after releasing an update on the lithium and tantalum product development programme at its flagship Uis mine in Namibia.

Laboratory test work on the mine’s ore samples had produced a high-grade, ultra-low iron lithium petalite concentrate said the AIM-traded company.

AIM’s top companies had a tricky week with the 100 index down 2.8 per cent at 3,998, compared to a 1 per cent dip for Footsie, with fundings again a thorny issue.

Fallers this week included several small caps looking to raise cash against a very difficult backdrop.

Graphene specialist Versarien was one and typical of the trend, with its shares tumbling 46 per cent to 10p after a placing.

The engineering materials group raised £1.85million at that price and was marked down accordingly.

Commercialisation work in the construction and leisure sectors is where the money is heading.

Neill Ricketts, chief executive, said: ‘While we will continue to review projects in other sectors, the board believes these two areas represent the best opportunities for near-term commercial success.’