The S&P/ASX 200 Index (ASX: XJO) may have fallen heavily last week, but that wasn't enough to stop the benchmark index from recording a 1.9% gain in October.
While a good number of shares recorded gains over the month, some climbed more than most. Here's why these were the best performers on the ASX 200 last month:
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Coca-Cola Amatil Ltd (ASX: CCL)
The Coca-Cola Amatil share price was the best performer on the ASX 200 in October with a sizeable 30.3% gain. Investors were buying this beverage company's shares last month after it received a takeover approach from the largest independent bottler of soft drinks, Coca-Cola European Partners. An offer of $12.75 cash per share was made, which values Coca-Cola Amatil at $9,282 million. While due diligence has been granted, some shareholders have labelled the offer opportunistic.
Link Administration Holdings Ltd (ASX: LNK)
The Link share price wasn't far behind with a 27.5% gain last month. This was also driven by news of a takeover approach. The administration services company received an offer from a consortium comprising Pacific Equity Partners, Carlyle Group, and their affiliates. While the first offer was rejected, the consortium's revised offer of $5.40 per share has been enough to grant it due diligence. However, the Link board still does not believe the updated proposal represents compelling value for shareholders. It feels further work is required to determine the viability and attractiveness of the separation of the PEXA and Link (ex PEXA) assets.
Challenger Ltd (ASX: CGF)
The Challenger share price was a strong performer and stormed 24.9% higher over the month. Investors were buying the annuities company's shares after the release of its first quarter update. That update revealed that Challenger's performance has been improving. It reported a 4% increase in assets under management to $89 billion. This was driven by a 4% lift in Life investment assets, which benefited from positive investment experience and a 46% increase in annuity sales compared to the prior corresponding period to $1,233 million. Challenger also reaffirmed its guidance for FY 2021. It continues to expect normalised net profit before tax in the range of $390 million and $440 million.
Virgin Money UK PLC (ASX: VUK)
The Virgin Money UK share price bounced back strongly and recorded a 24.2% gain in October. As well as benefiting from improving sentiment in the banking sector, investors were buying the UK-based bank's shares following an operational update. Virgin Money UK revealed that it plans to cut up to 400 jobs after abandoning its restructuring plans.
