ArjanF schreef op 1 december 2014 14:31:
Reactie SNS op dit nieuws:
www.iex.nl/Nieuws/ANP_ANP-011214-175/...BAM Groep (Buy): John Laing bids ~GBP 1bn for Balfour Beatty's PPPThe facts: According to the Financial Times (confirmed at John Laing), Balfour Beatty received a bid of ~GBP 1bn in cash for its investment arm. Link for FT subscribers here:
on.ft.com/11HwpQG. The deal is subject to further due diligence.
Our analysis: John Laing said to the Financial Times that if a deal was agreed, it would finance the acquisition via a rights issue. Balfour is likely to resist any approach for its PFI assets, which are closely integrated with the company's construction work and would leave the rest of the business with a much reduced valuation.
Although Balfour Beatty's PPP activities are larger than BAM's, this process will help to get a better feeling for a market valuation of BAM's PPP activities as well.
BAM has revenues of ~EUR 300m in this segment and a total net investment of EUR 102m with the 1H14 results (Director's valuation is probably ~85m higher). In the recent PPP analyst day (see presentation here:
bit.ly/1vzLYpx), BAM stated it had 31 projects in portfolio,
Conclusion & Action: We need more time to assess how Balfour Beatty's valuation of PPP projects compares to BAM, but we would not be surprised that there is more value in BAM's PPP than the market anticipates. Keep in mind, that BAM sells most of its finished projects to a joint venture with PGGM. We have a Buy rating on BAM.
www.snssecurities.nl/Research/Actions...