Wendel: falls further; difficulties at IHS
(CercleFinance.com) - The Wendel share has fallen again today, tumbling by over 5% (after a dropping by more than 9% yesterday).
The holding company has suffered in the wake of IHS publishing its annual accounts, the decline in its restated net assets (NAV) since its previous report and finally difficulties at its Nigerian investment IHS.
In particular, investors should examine whether restated net assets (NAV) are behind the fall in the share price. On 7 March 2018, this reached 167.3 euros per share, up 3.3% y-o-y, representing a discount of 16.1%.
However, on the previous calculation of this aggregate, on 17 November 2017, NAV stood at 181.3 euros per share, i.e. +30% y-o-y at that date, with a discount of 21.8%. The group's NAV has therefore fallen by 7.7%, while in comparison the CAC 40 index has fallen by just 2.5%.
Aurel BGC refers to "the depreciation of the Nigerian currency, which could reduce the value of Wendel's 21.3% stake in the capital of the telecom infrastructure operator IHS. This group was set to be floated this year, although there are now doubts about this. Oddo BHF also thinks the same, calculating this stake's value at 1.1 billion euros for Wendel.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The holding company has suffered in the wake of IHS publishing its annual accounts, the decline in its restated net assets (NAV) since its previous report and finally difficulties at its Nigerian investment IHS.
In particular, investors should examine whether restated net assets (NAV) are behind the fall in the share price. On 7 March 2018, this reached 167.3 euros per share, up 3.3% y-o-y, representing a discount of 16.1%.
However, on the previous calculation of this aggregate, on 17 November 2017, NAV stood at 181.3 euros per share, i.e. +30% y-o-y at that date, with a discount of 21.8%. The group's NAV has therefore fallen by 7.7%, while in comparison the CAC 40 index has fallen by just 2.5%.
Aurel BGC refers to "the depreciation of the Nigerian currency, which could reduce the value of Wendel's 21.3% stake in the capital of the telecom infrastructure operator IHS. This group was set to be floated this year, although there are now doubts about this. Oddo BHF also thinks the same, calculating this stake's value at 1.1 billion euros for Wendel.
Copyright (c) 2018 CercleFinance.com. All rights reserved.