EU HEALTHCARE: Lonza (LONNVX: BBB+) CHI Sale
Barclays put a wide range of valuation on the Capsules business of CHF 2.1bn - 4.3bn.
• The CHI business is for sale. In January the company said that it was "not available for sale in its present condition". But, with bankers appointed in Feb and progress said to be advancing in May, the sale is getting closer.
• The unit makes up around 1/6th of total sales but is low margin.
• We would anticipate sale proceeds to be largely reinvested internally.
• The CDMO business is targeting +20% sales growth and 30% Core EBITDA margin.
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EURIBOR: ERH6/U6 Steepener Flow
ERH6/U6 paper paid 9.0 on ~5K.
USDJPY TECHS: Maintains A Softer Tone
- RES 4: 150.49 High Apr 2
- RES 3: 149.28 High Apr 3
- RES 2: 148.65 High May 12 and a key resistance
- RES 1: 144.66/145.85 20- and 50-day EMA
- PRICE: 142.74 @ 07:34 BST May 26
- SUP 1: 142.23 Intraday low
- SUP 2: 141.96 76.4% retracement of the Apr 22 - May 12 bull leg
- SUP 3: 139.89 Low Apr 22 and a bear trigger
- SUP 4: 138.82 1.50 proj of the Feb 12 - Mar 11 - 28 price swing
USDJPY maintains a softer tone and the pair has traded to a fresh short-term cycle low today. Sights are on 142.36, the May 6 low. It has been pierced, a clear break of it would open 139.89, the Apr 22 low and key support. Key short-term resistance has been defined at 148.65, the May 12 high. Initial firm resistance to watch is 145.85, the 50-day EMA. Short-term gains would be considered corrective.
EGB OPTIONS: OEN5 116.00 Puts Sold
OEN5 116.00 puts 3K given at 3.
