Capgemini: Oddo says offer has limited success
(CercleFinance.com) - The AMF has announced the success of Capgemini's takeover bid on Altran.
Capgemini has collected 53.6% of Altran's shares, while the threshold for success was set at 50.1%.
The offer will be reopened from 28 January to 10 February, under the same terms (14.5 euros per share).
Oddo says in its daily equity roundup that this success is moderate insofar as Capgemini has "only" obtained 53.6% of Altran's capital and that Altran shares are now trading above the offer price, which does not encourage remaining shareholders to tender their shares to the offer (30% excluding those in the hand of Elliott and its counterparts).
It goes on to say that assuming that Capgemini were to hold about 54% of Altran's shares at the end of the extended offer period, this would - in its opinion - mean about an 11% accretive impact on its 2020 adjusted pro-forma EPS (vs. about +21% with a 100% stake). In addition, this result increases the potential amount that Capgemini will have to pay to minority shareholders to buy them out.
Some investors are also betting that minority shareholders will be bought out at a higher price in 18 months' time, Oddo adds.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Capgemini has collected 53.6% of Altran's shares, while the threshold for success was set at 50.1%.
The offer will be reopened from 28 January to 10 February, under the same terms (14.5 euros per share).
Oddo says in its daily equity roundup that this success is moderate insofar as Capgemini has "only" obtained 53.6% of Altran's capital and that Altran shares are now trading above the offer price, which does not encourage remaining shareholders to tender their shares to the offer (30% excluding those in the hand of Elliott and its counterparts).
It goes on to say that assuming that Capgemini were to hold about 54% of Altran's shares at the end of the extended offer period, this would - in its opinion - mean about an 11% accretive impact on its 2020 adjusted pro-forma EPS (vs. about +21% with a 100% stake). In addition, this result increases the potential amount that Capgemini will have to pay to minority shareholders to buy them out.
Some investors are also betting that minority shareholders will be bought out at a higher price in 18 months' time, Oddo adds.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.