Who are the new shareholders of Borsa Italiana and what they will do
Green light from the LSE assembly for the sale of Borsa Italiana to Euronext. The point of the situation, the changes in the shareholding structure and the opinion of the analysts.
ASSEMBLEA LSE APPROVES THE SALE OF THE ITALIAN BORSA
The London Stock Exchange shareholders meeting yesterday approved the sale of Borsa Italiana to Euronext for 4.325 billion euros.
THE TIMING OF THE OPERATION
The operation, which according to forecasts will be closed in the first half of 2021, is subject to the go-ahead from Euronext shareholders (the extraordinary meeting will be held on November 20) and the go-ahead from the competent antitrust authorities.
HOW SHAREHOLDERS CHANGE
The purchase will be financed with € 300 million of liquidity that Euronext already has in cash, € 1.8 billion of new debt and € 2.4 billion of capital increase which will be subscribed for approximately € 700 million by Cdp equity and Intesa Sanpaolo. Following the recapitalization, Cdp will have 7.3% of Euronext, on par with the French Caisse des depots et consignations, while Intesa will have 1.3%, a share similar to that of Bnp Paribas (pre-increase to 2, 2%). The new Italian shareholders will be part of Euronext's reference shareholding, which will continue to bring together about 23% of the capital, including Euroclear (which now has 8%), Sfp (the Belgian "CDP", which currently holds the 4.5%) and Abn Amro (today at 0.6%): the shareholders' agreement will bind the stable shareholders for a period of three years.
SIGNIFICANT ADVANTAGES FOR SHAREHOLDERS
The combination will offer significant benefits to shareholders. The transaction is estimated to result in an increase in adjusted EPS (pre-synergies) immediately, and to achieve double-digit growth in the third post-synergies year.
THE GROUP THAT WILL BE BORN
The merger between Euronext and Borsa Italiana will create a leading market infrastructure in the European Union with a key role in connecting local economies to global markets. The operation will in fact give rise to the first stock market in Europe, with over 1,800 listed companies and € 4.4 trillion in terms of aggregate capitalization of listed companies. It also creates the first European marketplace for the secondary market, with approximately 11.7 billion euros of share value traded daily and the first European marketplace for equity financing, with over 42 billion euros raised in 2019 by investors to finance companies in Europe.
Euronext and Borsa Italiana will combine their listing skills to facilitate access to capital by companies, with a specific focus on SMEs, family-run companies and companies in the technology sector, and to develop Elite, the platform dedicated to supporting international business and raising capital for ambitious and high-growth companies, in a pan-European context.
THE JUDGMENT OF JEFFERIES
Jefferies, as emerges from a recent report, thinks the operation is rational from a strategic point of view. In addition, the company defines the targets of the new group as credible, including the growth objective of the EPS. The analysts then point out that the transaction values Borsa Italiana 16.7 times the adjusted Ebitda 2019 pre-synergies, a level considered reasonable.
THE OPINION OF BANK OF AMERICA MERRILL LYNCH
BofA, as reported by MF-Milano Finance , has added what defines Euronext 2.0 to the best ideas for European Small and Mid Cap, explaining that the new reality will work on a larger scale, will be characterized by higher quality in profits and in different activities.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/chi-sono-i-nuovi-azionisti-di-borsa-italiana-e-cosa-faranno/ on Wed, 04 Nov 2020 06:12:37 +0000.