Lagardère: Oddo still a seller, maintains TP
(CercleFinance.com) - Negotiations have reportedly begun between Lagardère Capital (73% Arnaud Lagardère and 27% Groupe Arnault) and Vivendi according to the BFMTV website.
These negotiations concern the dismantling of Lagardère Publishing, with a sale of the international division to Vivendi, the end of the limited partnership with shares status and the allocation of approximately 10% of the share capital to Lagardère Capital. The agreement includes a commitment from Vivendi not to raise its stake in the capital.
The idea would therefore be to sell approximately 71% of the Lagardère Publishing scope to Vivendi.
In this scenario, the Lagardère SCA share would therefore remain listed, with the Arnault Group/Lagardère Capital pact (25/27% of the share capital) as the largest shareholder, which would retain its media assets (Europe 1 radio station, etc.), Lagardère Travel Retail and the French division of Lagardère Publishing (around 29% of sales), Oddo explains.
Assuming that they succeed, two points will be important to take into account: 1/ the sale price of Lagardère Publishing's international division; 2/ the structuring of the capital after the end of the limited partnership with shares status, the broker says.
One of the key variables is the ability of the shareholder pact to secure a blocking minority and in particular to acquire the share of Qatar (19% of voting rights, Oddo adds.
Following this information, Oddo confirms its reduce rating on the stock, with a target price of 15 euros.
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.
These negotiations concern the dismantling of Lagardère Publishing, with a sale of the international division to Vivendi, the end of the limited partnership with shares status and the allocation of approximately 10% of the share capital to Lagardère Capital. The agreement includes a commitment from Vivendi not to raise its stake in the capital.
The idea would therefore be to sell approximately 71% of the Lagardère Publishing scope to Vivendi.
In this scenario, the Lagardère SCA share would therefore remain listed, with the Arnault Group/Lagardère Capital pact (25/27% of the share capital) as the largest shareholder, which would retain its media assets (Europe 1 radio station, etc.), Lagardère Travel Retail and the French division of Lagardère Publishing (around 29% of sales), Oddo explains.
Assuming that they succeed, two points will be important to take into account: 1/ the sale price of Lagardère Publishing's international division; 2/ the structuring of the capital after the end of the limited partnership with shares status, the broker says.
One of the key variables is the ability of the shareholder pact to secure a blocking minority and in particular to acquire the share of Qatar (19% of voting rights, Oddo adds.
Following this information, Oddo confirms its reduce rating on the stock, with a target price of 15 euros.
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.