Here’s how Astaldi will be integrated into Webuild

15 March 20213 years ago babelfish

According to analysts, the exchange of the integration of Astaldi in Webuild favors the former Salini Impregilo. All the details

The integration of Astaldi in Webuild is underway.

The boards of directors of the two companies defined the exchange ratio, the timing and the procedures for the corporate integration process. The terms and conditions of the transaction, which represent a further important stage in the implementation of Progetto Italia ( the former Salini Impregilo wants to strengthen the construction sector in the country) will be approved by the boards of directors of the two companies on March 19, to then be submitted to the assemblies in April.

All the details.

THE METHODS

Let's start with the modalities. A partial proportional spin-off of Astaldi will be carried out in favor of Webuild, which will lead to the former Salini Impregilo (Webuild already owns a 66% stake in Astaldi) the activities intended for business continuity, while Astaldi will retain ownership of the assets and active relationships and liabilities merged into the Intended Assets.

THE EXCHANGE

The exchange of the transaction was also defined, with the attribution to Astaldi shareholders of 203 WeBuild ordinary shares for every 1000 Astaldi owned. The exchange ratio, also defined taking into account the income, equity and financial performance of the two groups during 2020, is therefore 0.203, lower than the share price of the Roman company.

ASTALDI IN LOSS

And Astaldi in Piazza Affari recorded a loss (at the time of writing, 1.00 pm) of more than 15% at approximately 0.36. “The shares of the Roman group slide on the stock exchange to adjust to the values at which the operation will take place”, comments Il Sole 24 Ore.

WEBUILD FAVORITE

There is no doubt, in fact, that the exchange favors Webuild. "Compared to the current market prices of the two shares, the exchange ratio: 0.203 Astaldi / Webuild favors the latter, so we expect today a positive reaction for the price of the Webuild share and a negative reaction for the price of the Astaldi share", underlined Bestinver Securities, which holds, reports MF-Milano Finanza , rating buy and target price between 1.5 and 1.6 euros on Webuild.

THE STORM

Webuild and Astaldi, who "are confident that the integration of the activities will generate significant operating, economic and financial benefits for the combined group", reads the note, will bring the demerger process to the approval of their respective BoDs on March 19, and then present it at the Extraordinary Shareholders' Meetings on 29 April, Astaldi, and on 30 April, Webuild.

THE JUDGMENT OF THE ANALYSTS

Banca Akros and Mediobanca bless the transaction, according to what Mf-Milano Finanza reports. “We expect the deal to lead to important synergies”, is the comment of Banca Akros, which confirms a neutral rating and a target price of € 1.40 for Webuild.

Mediobanca Securities argues that “Webuild's move is natural, considering the current 66% stake in Astaldi and that the full integration of Astaldi in Webuild should generate synergies from procurement to commercial up to cost efficiency. Cost synergies already present in our forecasts ". Analysts set a neutral rating and target price at € 1.80 on Webuild.

For Bestinver, the integration "will allow to maximize the synergies between the two groups by eliminating the conflict of interest with the minority shareholder of Astaldi". The broker expects that the Ex Salini Impregilo, in the year of the pandemic, saw revenues fall by 10% year-on-year to 4.80 billion euros (5.07 billion the consensus estimate), the adjusted EBITDA margin settle at 190 basis points, down 6% and net financial debt increased to 0.729 billion from 0.631 billion in December 2019.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/ecco-come-astaldi-sara-integrata-in-webuild/ on Mon, 15 Mar 2021 15:03:23 +0000.