FTSE 250 movers: Digital9 assurance calms investors

FTSE 250: 18,908.35, + 0.15% at 1415 GMT.

Digital 9 Infrastructure moved to reassure investors on Tuesday after continued volatility in its share price.

Shares in the investment firm, which specialises in the infrastructure used to run and manage the internet, have lost 27% over the last month, and 30% in the year to date.

But Digital 9, which joined the London Stock Exchange in 2021, insisted on Tuesday that it was not aware of any portfolio specific factors that might have caused the decline.

It continued: "The board believes that the discount to net asset value at which the company’s share price currently trades materially undervalues the company and its portfolio.

"The board maintains confidence in the group’s diversified portfolio of nine high-quality date centre, subsea fibre, wireless and terrestrial fibre assets, which continue to perform strongly, in line with management expectations."

Digital 9 added that following recent share purchases, the investment manager along with senior members of the digital infrastructure team now hold shares representing around 0.27% of the total issued share capital.

The UK wealth business of Investec and Rathbones have agreed to merge in an £839m all-share deal, the two companies said on Tuesday.

New Rathbones shares will be issued for 100% of Investec Wealth & Investment shares, which would leave Investec with an economic interest of 41.25% in the combined company and voting rights limited to 29.9%.

The enlarged Rathbones Group will create the UK's leading discretionary wealth manager with approximately £100bn in funds under management and administration, the duo said in a statement. However, the deal does not include Swiss-based Investec Bank or the international wealth business, both of which remain wholly-owned subsidiaries of the broader Investec Group.

There was no mention of job losses, but the two firms said they were targeting annual run-rate cash synergies of at least £60m, "driven primarily by cost savings as well as higher net interest income".

Drax powered ahead on the back of an upbeat note by Liberum.

FTSE 250 - Risers

Digital 9 Infrastructure NPV (DGI9) 65.00p 5.86%
Investec (INVP) 457.50p 2.92%
SDCL Energy Efficiency Income Trust (SEIT) 87.00p 2.84%
Wood Group (John) (WG.) 210.00p 2.64%
FirstGroup (FGP) 106.70p 2.40%
Target Healthcare Reit Ltd (THRL) 73.80p 2.36%
Molten Ventures (GROW) 282.80p 2.32%
Hilton Food Group (HFG) 698.00p 2.20%
Drax Group (DRX) 606.00p 2.19%
Direct Line Insurance Group (DLG) 143.00p 2.18%