A Spanish mining firm, Abenojar Tungsten, is preparing to list on the London stock market to develop its central Spain operations. Meanwhile, US-based activist investors are pushing the UK storage company Big Yellow to find a buyer.
The £150 million bet on the El Moto mine
Abenojar Tungsten is set to enter the FTSE 250 index with an initial public offering that values the company at more than £500 million. According to the report, the firm expects to confirm it has raised £150 million to develop the El Moto tungsten mine in central Spain as early as tomorrow. the venture was established three years ago by the Garcia San Miguel mining family, and approximately 10 percent of the company's shares will be traded in London starting the week after next.
Breaking China's 80 percent tungsten grip
The development of the El Moto mine is a strategic move for the European Union, as the project has been designated an EU strategic project under the Critical Raw Materials Act. Once operational, Abenojar Tungsten aims to produce a fifth of Europe's tungsten, a material essential for the defense and aerospace sectors. This push for autonomy comes as China, which currently controls 80 percent of the global supply, imposed export controls last year, causing prices to surge.
This trend reflects a broader geopolitical shift toward securing critical raw materials to reduce dependence on single-nation monopolies. the listing follows the £5.3 billion flotation of Airtel Money, the largest London listing in five years, suggesting a potential return of high-value foreign firms to the City.
Ancora and Irenic target a 40 percent valuation gap
While Abenojar Tungsten enters the market, Big Yellow is facing an aggressive campaign from US activist funds Ancora and Irenic. As the report says, both funds hold 4 percent stakes in the FTSE 250-listed self-storage firm and are urging the company to seek a buyer. The campaign has included the launch of unlockbigyellow.com, a website claiming that Big Yellow's shares are trading at a 40 percent discount to its net asset value.
The pressure on Big Yellow comes amid a challenging period for the UK warehouse sector. The company's shares have declined 11 percent this year, a slump attributed to the slowdown in the housing market. Despite this, Big Yellow continues to expand, managing 115 London-based warehouses totaling 6.9 million sq ft, with plans to grow that capacity to 7.7 million sq ft.
Blackstone and KKR as potential sponsors for Big Yellow
The push for a sale is not without precedent,as the £1.7 billion real estate investment trust (Reit) has previously been a target for acquisition. ancora claims that the US property giant Blackstone nearly acquired the firm a year ago, allegedly offering a price 50 percent above the current share value before talks collapsed.
Beyond Blackstone, the activist funds have pointed to private equity firm KKR as another potential "sponsor" for a bid.. KKR's interest is highlighted by its previous attempt to acquire the Assura healthcare Reit last year, signaling a persistent appetite among US private equity for undervalued UK real estate assets.
The missing response from Big Yellow's board
Despite the public campaign by Ancora and Irenic, several key detaills remain unverified. While the activists claim a massive discount to net asset value,the source does not provide an independent audit of Big Yellow's current valuation to verify the 40 percent gap. Furthermore, it remains unclear if Big Yellow's board is considering any specific offers or if they view the current housing market slump as a temporary dip rather than a reason to sell.
Big Yellow has stated it will "continually evaluate all options to maximize shareholder value," but the company has not yet addressed the specific claims regarding the failed Blackstone deal or the pressure from the Ohio-based Ancora fund.
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