Author: Canadian Press

Payment tech firm Nuvei forms special committee to evaluate proposals, shares soar

MONTREAL — Shares of Nuvei Corp. rose nearly 30 per cent after it said it has formed a special committee to evaluate expressions of interest for the payment technology firm.

Nuvei shares were up $8.47 at $37.95 in late-morning trading on the Toronto Stock Exchange.

The company announced the establishment of the committee after media reports on the weekend speculating about a potential deal that would see the company taken private.

Nuvei confirmed it was in talks in connection with a potential transaction involving continued significant ownership by certain of the holders of its multiple voting shares, including Phil Fayer, Nuvei’s founder, chair and chief executive 

However, Nuvei cautioned that it has not entered into any agreements and there could be no assurance that any discussions would result in a deal.

It says the special committee is continuing its evaluation of the proposals and the strategic alternatives available to the company.

Canadian actor and entrepreneur Ryan Reynolds announced an investment in Nuvei last year.

The investment by the actor came after it was announced that Mint Mobile, the wireless provider partly owned by Reynolds, had been acquired by telecoms giant T-Mobile US Inc. 

In January, Nuvei announced a partnership deal with software company Adobe to provide customers access to its payment technology.

The agreement with Adobe followed a partnership deal between Nuvei and Microsoft Corp. announced last year that will see the software company start using Nuvei’s payments technology in the Middle East and the Africa.

This report by The Canadian Press was first published March 18, 2024.

Companies in this story: (TSX:NVEI)

The Canadian Press

Payment tech company Nuvei forms special committee to evaluate proposals

MONTREAL — Nuvei Corp. says it has formed a special committee to evaluate expressions of interest for the payment technology firm including a potential going-private transaction as well as any other strategic alternatives.

Nuvei made the comments after media reports on the weekend speculating about a potential deal.

The company confirmed it was in talks in connection with a potential transaction involving continued significant ownership by certain of the holders of its multiple voting shares, including Phil Fayer, Nuvei’s founder, chair and chief executive

Nuvei cautioned that it has not entered into any agreements and there could be no assurance that any discussions would result in a deal.

It says the special committee is continuing its evaluation of the proposals and the strategic alternatives available to the company.

Shares in Nuvei closed at $29.48 on the Toronto Stock Exchange on Friday.

This report by The Canadian Press was first published March 18, 2024.

Companies in this story: (TSX:NVEI)

The Canadian Press

Linamar shares up more than 11 per cent after company reports higher earnings, sales

GUELPH, Ont. — Shares in Linamar Corp. rose more than 11 per cent on Thursday after the company raised its dividend and reported its fourth-quarter profit and sales rose compared with a year ago.

Executive chair and CEO Linda Hasenfratz also says the company is looking forward to another year of double-digit growth in revenue and profits for 2024.

The Guelph, Ont.-based manufacturing company reported late Wednesday that it earned $104.4 million or $1.69 per diluted share in the fourth quarter of 2023, up from $92.2 million or $1.49 per diluted share a year earlier. Sales for the quarter rose to $2.5 billion from $2.1 billion.

On a normalized basis, the company says it earned $1.98 per diluted share in its latest quarter, up from a normalized profit of $1.61 per per diluted share a year earlier.

Linamar also announced Wednesday that it will now pay a quarterly dividend of 25 cents per share, up from 22 cents.

Shares in the company closed up $7.27 at $70.82 on the Toronto Stock Exchange.

This report by The Canadian Press was first published March 7, 2024.

Companies in this story: (TSX:LNR)

The Canadian Press

Most actively traded companies on the Toronto Stock Exchange

TORONTO — Some of the most active companies traded Monday on the Toronto Stock Exchange:

Toronto Stock Exchange (21,531.07, down 21.28 points):

Suncor Energy Inc. (TSX:SU). Energy. Down 90 cents, or 1.90 per cent, to $46.50 on 18.2 million shares.

Canadian Natural Resources Ltd. (TSX:CNQ). Energy. Down $1.96, or 2.01 per cent, to $95.74 on 14.2 million shares.

Delta 9 Cannabis Inc. (TSX:DN). Health care. Up half a cent, or 25 per cent, to 2.5 cents on 8.7 million shares. 

Great-West Lifeco Inc. (TSX:GWO). Finance. Up 52 cents, or 1.24 per cent, to $42.45 on 7.5 million shares. 

Baytex Energy Corp. (TSX:BTE). Energy. Down 15 cents, or 3.43 per cent, to $4.23 on 7.2 million shares. 

Bitfarms Ltd. (TSX:BITF). Finance. Down 40 cents, or 10.10 per cent, to $3.56 on 7.1 million shares. 

Companies in the news:

Canadian National Railway Co. (TSX:CNR). Transportation. Down 72 cents, or 0.41 per cent, to $175.97. A Federal Court decision has nixed Ottawa’s approval of a massive rail-and-truck hub in the Greater Toronto Area. The ruling states that the federal government failed to grapple with whether Canadian National Railway Co.’s planned facility in Milton, Ont., will have a harmful effect on human health, particularly through its impact on air quality. The decision sets aside the green light issued by cabinet in January 2021 and sends the $250-million project back to Ottawa for reconsideration.

TC Energy Corp. (TSX:TRP). Energy. Up eight cents, or 0.15 per cent, to $54.00. TC Energy Corp.’s plan to shore up its balance sheet with $3 billion or more in asset sales took a step forward Monday after a deal to sell a U.S. pipeline. The Calgary-based company and its partner said they are selling the Portland Natural Gas Transmission System for US$1.14 billion to BlackRock, through a fund managed by its diversified infrastructure business, and investment funds managed by Morgan Stanley Infrastructure Partners. 

This report by The Canadian Press was first published March 4, 2024.

The Canadian Press

Most actively traded companies on the Toronto Stock Exchange

TORONTO — Some of the most active companies traded Monday on the Toronto Stock Exchange:

Toronto Stock Exchange (21,531.07, down 21.28 points):

Suncor Energy Inc. (TSX:SU). Energy. Down 90 cents, or 1.90 per cent, to $46.50 on 18.2 million shares.

Canadian Natural Resources Ltd. (TSX:CNQ). Energy. Down $1.96, or 2.01 per cent, to $95.74 on 14.2 million shares.

Delta 9 Cannabis Inc. (TSX:DN). Health care. Up half a cent, or 25 per cent, to 2.5 cents on 8.7 million shares. 

Great-West Lifeco Inc. (TSX:GWO). Finance. Up 52 cents, or 1.24 per cent, to $42.45 on 7.5 million shares. 

Baytex Energy Corp. (TSX:BTE). Energy. Down 15 cents, or 3.43 per cent, to $4.23 on 7.2 million shares. 

Bitfarms Ltd. (TSX:BITF). Finance. Down 40 cents, or 10.10 per cent, to $3.56 on 7.1 million shares. 

Companies in the news:

Canadian National Railway Co. (TSX:CNR). Transportation. Down 72 cents, or 0.41 per cent, to $175.97. A Federal Court decision has nixed Ottawa’s approval of a massive rail-and-truck hub in the Greater Toronto Area. The ruling states that the federal government failed to grapple with whether Canadian National Railway Co.’s planned facility in Milton, Ont., will have a harmful effect on human health, particularly through its impact on air quality. The decision sets aside the green light issued by cabinet in January 2021 and sends the $250-million project back to Ottawa for reconsideration.

TC Energy Corp. (TSX:TRP). Energy. Up eight cents, or 0.15 per cent, to $54.00. TC Energy Corp.’s plan to shore up its balance sheet with $3 billion or more in asset sales took a step forward Monday after a deal to sell a U.S. pipeline. The Calgary-based company and its partner said they are selling the Portland Natural Gas Transmission System for US$1.14 billion to BlackRock, through a fund managed by its diversified infrastructure business, and investment funds managed by Morgan Stanley Infrastructure Partners. 

This report by The Canadian Press was first published March 4, 2024.

The Canadian Press

National Bank’s shares rise as it reports $922M Q1 profit

MONTREAL — Shares of National Bank of Canada pushed to an all-time high Wednesday as the bank delivered positive results that surprised to the upside.

The bank’s shares were trading up $2.66, or 2.56 per cent, to $106.29 in mid-afternoon trading on the Toronto Stock Exchange, pushing past the $105.57 intraday high the bank hit in November 2021.

Canada’s other big banks all hit trading highs in early 2022 but have more recently been under pressure on concerns about slowing loan growth and rising provisions for bad loans.

National Bank reported a first-quarter profit of $922 million on Wednesday, up from $876 million a year earlier, as its revenue rose across its business.

“Our results reflect effective capital deployment to generate profitable long-term growth, active cost management and simplification efforts,” said chief executive Laurent Ferreira on an earnings call.

“The earnings power of our diversified business mix and defensive posture provide us with resiliency and flexibility, as demonstrated by the performance of our business segments.”

The bank reported provisions for credit losses totalling $120 million, up from $86 million a year earlier.

It was the only bank of the four so far to have its loan loss provisions come in line with analyst expectations, said Scotiabank analyst Meny Grauman.

“Overall we believe that (National Bank) delivered the strongest result of the quarter, with two of the Big Six still to go,” he said in a note. 

There remains upside potential in the stock, despite its strong outperformance heading into reporting, said Grauman.

Revenue for the quarter totalled $2.71 billion, up from $2.56 billion in the same quarter last year.

On an adjusted basis, the bank says it earned $2.59 per diluted share for its most recent quarter, up from an adjusted profit of $2.54 per diluted share in its first quarter last year.

The average analyst estimate had been for a profit of $2.36 per share, according to estimates compiled by financial markets data firm Refinitiv.

The bank’s earnings have been helped by a steadier economy and consumer finances in its focus market of Quebec, said chief risk officer William Bonnell on the call.

“In our portfolio, we do see Quebec consumers appearing to have more resilience and performing better on a delinquency basis.”

But the bank does still see more strain ahead. 

National Bank forecasts the unemployment rate rising to seven per cent by early 2025, and for delinquencies and impaired provisions to continue their upward path.

In first-quarter financial results, the bank said its personal and commercial banking business earned $339 million in its first quarter, up from $326 million a year earlier, helped by higher revenues, partly offset by higher non-interest expenses and higher provisions for credit losses.

The bank’s wealth management business earned $196 million in its latest quarter, down from $198 million a year earlier, while its financial markets operations earned $308 million, up from $298 million in the first quarter of 2023.

National Bank’s U.S. specialty finance and international business earned $150 million for the quarter, up from $147 million a year earlier.

The bank’s “other” category recorded a loss of $71 million in the first quarter compared with a loss of $93 million in the same quarter last year.

This report by The Canadian Press was first published Feb. 28, 2024.

Companies in this story: (TSX:NA)

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