PARIS, April 3 (Reuters) – Nexity is making progress on the Paris Stock Exchange on Wednesday morning after finalizing the sale of its property management activities to the investment company Bridgepoint for an enterprise value of 440 million euros.
At 08:32 GMT, Nexity gained 3.28%, among the best performances of the SBF 120 which increased at the same time by 0.08%.
The real estate developer, which is bearing the brunt of the crisis in the sector, announced that it would use the sale proceeds of 400 million euros “to significantly accelerate the debt reduction trajectory”.
Its net debt reached 776 million euros at the end of 2023.
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“The stock’s rebound may seem surprising, because the news (of the sale) was announced in December,” notes Florian Cariou, analyst at Midcap Partners.
Since then, the publication of poor results for 2023 and the announcement of the elimination of the dividend have caused Nexity shares to fall, which is currently at its lowest level since 2008.
“The proceeds from the sale are now on the group’s balance sheet, which, compared to the current capitalization, may have made investors aware that the valuation was very low,” believes the analyst. (Written by Dimitri Rhodes, Corentin Chappron, edited by Blandine Hénault)
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