Veolia: new negotiations, Oddo stays on buy
(CercleFinance.com) - Engie's Board of Directors yesterday evening took note of the commitments undertaken by Veolia and accepted its offer to acquire 29.
9% of its shares in Suez at an increased price of 18 euros per share.
Oddo indicates that this is a first step and that a new period of negotiations will commence. According to the analyst, the increased price of 18 euros per share will have an impact on the accretion even though the impact of the sales is currently difficult to evaluate.
The broker estimates that with a consolidated stake of 29.9% in Suez, Veolia will cash in the ordinary share dividends of 120.8 million euros based on maintaining the dividend at 0.65 euros per share for 2020 and 2021 (as defined in the revised strategic plan of Suez Shaping 2030).
The broker considers that at this stage, the accretion calculations relating to a 100% integration of Suez are premature and it maintains its buy recommendation with a price target of 24 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.
9% of its shares in Suez at an increased price of 18 euros per share.
Oddo indicates that this is a first step and that a new period of negotiations will commence. According to the analyst, the increased price of 18 euros per share will have an impact on the accretion even though the impact of the sales is currently difficult to evaluate.
The broker estimates that with a consolidated stake of 29.9% in Suez, Veolia will cash in the ordinary share dividends of 120.8 million euros based on maintaining the dividend at 0.65 euros per share for 2020 and 2021 (as defined in the revised strategic plan of Suez Shaping 2030).
The broker considers that at this stage, the accretion calculations relating to a 100% integration of Suez are premature and it maintains its buy recommendation with a price target of 24 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.