(Boursier.com) — Bouygues brings up the rear on the CAC40 this weekend with a share which drops 2.3% to 34 euros. Operators have poorly received the announcement of the acquisition of 100% of La Poste Telecom, the leading virtual operator in the French market (to date 51% owned by the La Poste group and 49% by SFR). This operation is part of Bouygues Telecom’s growth strategy. It would allow it to strengthen its base of around 2.3 million Mobile customers, presenting a high level of customer satisfaction. The acquisition price is 950 million euros, amount which will be adjusted according to the timetable for carrying out the operation. Altice France/SFR having a right of pre-emption, the operator could still prevent this transaction….
JP Morgan analysts note that the acquisition price is high, but cite “the advantages of the distribution agreement, a broader customer base, business-to-business opportunities linked to La Poste’s distribution network and the absence of impact on Bouygues’ capex”.
To be clear, this operation makes industrial sense but would not contribute to generating additional value on our valuation of Bouygues Telecom, says Oddo BHF. The broker explains that this transaction is rather expensive with a valuation multiple of 20x 2024e EBITDA and reduced to only 7x from 2028 thanks to synergies. For comparison, Bouygues Telecom bought EIT for a post-synergies valuation multiple of 4.3x maximum.
The analyst maintains his ‘neutral’ recommendation, also seeing no urgency to buy the stock aggressively. The prospects for recovery of Equans’ margin in 2024 and the possible margin reserve linked to the provision made last year on Equans could call into question the status of “funding short of the sector”.
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