(BFM Bourse) – The Exclusive Networks group could be the subject of a buyout offer from its majority shareholder. Stifel expects a potential proposal around 26 euros per share.
Exclusive Networks could say goodbye to the Paris Stock Exchange. Permira, its majority British shareholder since 2018, is reportedly considering a takeover of the French cybersecurity specialist, Reuters reported on Thursday citing sources familiar with the matter.
To get Exclusive Networks off the stock radar, Permira reportedly plans to partner with investors, such as private equity funds, who have expressed interest in launching a joint offering for the outstanding shares. The discussions are only at a preliminary stage and it is not certain that Permira wishes to follow through, these same sources also told Reuters. Neither Permira nor Exclusive Networks wished to make comments to Reuters.
A market that takes note
On the Paris Stock Exchange, the market takes note of this press information. The title of the French cybersecurity specialist increased by 3.9%, the day after an increase of almost 9% to 20.45 euros. Exclusive Networks is therefore trading slightly above its introductory price set at 20 euros.
The company based in Boulogne-Billancourt had in fact taken its first steps on compartment A of Euronext in relative anonymity, at the end of September 2021. The company was valued at 1.8 billion euros at the end of the operation at during which it raised 372 million euros.
Euronext specified that this was the 78th listing of a technology company on the pan-European market in 2021, and the third technological “large cap” (valued at more than one billion euros) introduced on Euronext Paris in 2021 , after Believe and OVH Cloud.
A takeover bid at 26 euros?
The Stifel bank did not fail to return to this press information in a note published this Friday morning. The financial intermediary points out that in 2023 the group achieved its objectives formulated when it was listed on the stock market, particularly on the adjusted operating margin (Ebit) front. However, Stifel notes that the company’s stock market multiples have depreciated, in particular because investors avoid buying a stock which has limited liquidity (the free float represents 32% of the total capital) and presents the risk of seeing Permira potentially exit after the 2021 IPO.
Stifel believes that Permira would be likely to offer 26 euros per share to buy back all of the shares still in circulation, based on several criteria. The financial intermediary explains that the latest delistings of companies recently listed on the stock exchange were carried out with an average premium of 48%. And in the case of Exclusive Networks, this would lead to a price of 26.60 euros based on the closing price preceding the Reuters announcements, namely 18.04 euros as of March 13.
“At 26 euros per share” and a valuation multiple of 11.8 times the gross operating profit (Ebitda), “the valuation would remain less than 13 times” the Ebitda, the price paid “by Permira for Exclusive Networks in 2018″, recalls Stifel.
Agreement or not, the financial intermediary is firmly convinced that “something will happen in 2024” on the Exclusive Networks share price, and cites three possible scenarios. “Exclusive Networks becomes a private company, Permira finally sells shares on the market, even at a lower price than the IPO and finally, Exclusive Networks dilutes existing shareholders by making a large acquisition financed with new shares” , lists Stifel which reiterates its purchase opinion while increasing its price target to 26 euros.
Sabrina Sadgui – ©2024 BFM Bourse
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