Vivendi: Oddo confirms rating and target
(CercleFinance.com) - Vivendi yesterday announced that between 3 and 7 February, it repurchased 1.
29 million of its own shares. These repurchases were made at a weighted average price of 24.8324 euros, meaning a total of just over 32 million euros.
Oddo says that Bolloré now virtually holds 27.6% of Vivendi's capital following the share buybacks. Following this deal, Oddo confirms its Neutral rating on the share, along with a target price of 26.50 euros (less than one euro above its current market price).
The broker wonders about the acquisition of an additional 8% of its capital, saying that it believes that Vivendi will probably continue to buy shares over the next few months if the share price is below 25 euros (limit set by the AGM).
Assuming the acquisition of 8.1% of its capital, followed by its cancellation, Bolloré's stake would be increased to 29.9%, which is just below the takeover threshold, Oddo adds.
Regarding Bolloré, in the event of a total dividend payout of 3 billion euros (i.e. 100% of the value of the second tranche), this operation would enable him to recover 1 billion euros (since he would hold 29.9%).
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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.
29 million of its own shares. These repurchases were made at a weighted average price of 24.8324 euros, meaning a total of just over 32 million euros.
Oddo says that Bolloré now virtually holds 27.6% of Vivendi's capital following the share buybacks. Following this deal, Oddo confirms its Neutral rating on the share, along with a target price of 26.50 euros (less than one euro above its current market price).
The broker wonders about the acquisition of an additional 8% of its capital, saying that it believes that Vivendi will probably continue to buy shares over the next few months if the share price is below 25 euros (limit set by the AGM).
Assuming the acquisition of 8.1% of its capital, followed by its cancellation, Bolloré's stake would be increased to 29.9%, which is just below the takeover threshold, Oddo adds.
Regarding Bolloré, in the event of a total dividend payout of 3 billion euros (i.e. 100% of the value of the second tranche), this operation would enable him to recover 1 billion euros (since he would hold 29.9%).
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.