Agta Record: Oddo confirms rating after disposal

(CercleFinance.com) - The shareholders of Agta Record, the family-owned company 3B Finance GmbH, CM-CIC Investissement and Banque Fédérative du Crédit Mutuel (Crédit Mutuel Alliance Fédérale) have accepted Assa Abloy's divestment offer.

This transaction would be at a price of 70 euros per share, meaning a total value of 933 million euros for 100% of Agta Record's capital. Under the deal, Assa Abloy would therefore hold 93.77% of Agta Record's share capital. Following this announcement, Oddo maintains its Neutral rating on the stock, along with its target price of 70 euros.

Agta record Group announces that the partners of 3B Finance GmbH (Bunzl family), CM-CIC Investissement and BFCM (Crédit Mutuel Alliance Fédérale), as partners of Agta Finance, have signed a sale agreement with Assa Abloy, valuing the majority stake of 53.75% held by Agta Finance in the capital of Agta record at a price of 70 euros per share.

Oddo believes that the acquisition that Assa Abloy is considering is logical because of the group's existing 39% stake in its capital. It makes a lot of sense to expand its international network and product offering.

The announced price of 70 euros per share is bang in line with Oddo's target price, which it believes is justified (19e EV/EBIT: 16x), as the share price already included a certain speculative premium related to the potential for the company's delisting, the broker said.



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