Direct Energie: stock soars 30%, lining up with Total's bid

(CercleFinance.com) - The Direct Energie share is the sharpest riser in compartment A of Euronext Paris this morning, soaring 30%, moving towards the 42 euro takeover bid that Total will file.


At this price, the alternative energy distributor would have a market capitalisation of around 1.9 billion euros.

Indeed, Total will initially buy 74.3% of the capital of Direct Energie at 42 euros per share (dividend 0.35 euro detached), meaning an instant premium of 30%. An offer under the same conditions would be launched thereafter. At this price, Direct Energie is valued at approximately 12.5x 2018e EBITDA.

In doing so, the French oil and gas group intends to step up its aims in gas and electricity in France and Belgium as an alternative supplier. It will combine its current portfolio of 1.5 million customer sites with that of Direct Energie (2.6 million), considering that Total in 2022 aims to have over six million clients in France, and over one million in Belgium.


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