(CercleFinance.com) – Believe shares resumed their trading with a sharp increase on Tuesday morning to get closer to the level corresponding to the price proposed by a consortium with a view to taking control of the group.
The stock, suspended yesterday following the presentation of the offer, jumped by almost 19% this morning after an hour and a half of trading.
The investment funds TCV and EQT, associated with Denis Ladegaillerie, CEO of the digital music specialist, announced yesterday that they had decided to form a consortium with the aim of initiating a purchase offer on all of the shares at a price of 15 euros per share.
The group of investors plans to acquire the shares of three historic shareholders, which will increase its stake to nearly 72% of the capital.
The offer price reflects a premium of 21% compared to the last closing price on Friday, as well as a respective premium of 44% compared to the weighted average price over the last 30 trading days.
In a reaction note, however, Stifel analysts recommend that shareholders not tender their shares to the offer, which they consider insufficient.
‘The operation, simply intended to allow an exit of historic shareholders who were starting to get impatient, does not value the company at its fair value, and even less on the basis of its full potential’, underlines the research office.
Stifel underlines that the offer values Believe at 1.15x its expected turnover for 2024, far from the multiples on which Spotify (2.6x), Warner Music (3.5x) or Universal Music (4.4x) trade. , although the company is growing faster than the industry and its competitors.
For Christopher Dembik, investment strategy advisor at Pictet Asset Management, the acceleration in takeover bids observed in the Parisian small caps segment is not insignificant.
‘This is a sign that valuations are low but also that there are refinancing difficulties for many companies in this sector,’ he underlines.
‘Capital flows continue to be monopolized by large stocks and this is certainly not going to change anytime soon,’ warns the analyst.
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