ACS moves tab at the beginning of the year. After closing on December 31 the sale of the bulk of its industrial services division to Vinci for up to 5,600 million euros, the German subsidiary of the group chaired by Florentino Pérez, Hochtief, has launched a takeover bid (takeover bid) for the 100% of the Australian Cimic, of which until now it holds 78.58% of the capital. With this, this firm will go public. The value of the proposal is close to 1,000 million euros.
ACS, which controls 50.4% of Hochtief -its other reference shareholder is Atlantia, a partner of the Spanish group in Abertis-, has spent years analyzing different options for its German and Australian subsidiaries. In fact, a possible merger of both companies was considered in the past.
Now, ACS has decided that Hochtief absorbs 100% of Cimic, a company that in turn counts brands such as CPB Contractors, Pacific Partnerships, Thiess or Ventia among its investees. The firm has been led for two years by Juan Santamaría, as CEO -and as president for one year and four months-, a man of the highest confidence of President Pérez and who, in fact, emerges in the pools as the first candidate to become the next CEO of ACS after the departure in 2021 of Marcelino Fernández Verdes.
The offer of 22 Australian dollars implies a premium of 33.4% compared to the 16.49 Australian dollars of closing of the last session
The German construction company has launched the takeover bid for the 21.42% that it does not control through its subsidiary Hochtief Australia. To deal with the operation, it has signed a syndicated financing facility led by BNP Parabias, Deutsche Bank and JP Morgan. It will be, therefore, the German firm that will bear the cost of the acquisition. ACS is focused, with what it obtained from industrial services, on growing on highways, with Abertis as the spearhead, and on renewable energies.
The offer for 21.42% of the capital (66.6 million shares) of Cimic is 22 Australian dollars per share, which implies a premium of 33.4% compared to the 16.49 Australian dollars at which it was listed. the company at the close of the market on Wednesday -in Australia-. This valuation would mean for Hochtief disbursing 1,466 million Australian dollars (939 million euros at current exchange rates) to take over 100% of the company. Before announcing the takeover bid, Cimic’s capitalization rose to around 5,133 million euros.
Cimic shares exceeded 50 Australian dollars in 2019. However, starting in the summer of that year, a sharp decline began that was later exacerbated by the pandemic and by problems with some contracts in the Middle East that, in fact, impacted in ACS accounts.
Abertis boosts its profit
The group led by the also president of Real Madrid today presents its 2021 annual accounts with the boost given by the recovery experienced by Abertis. The concessionaire, as revealed on Wednesday by Hochtief -owner of 20% of the firm of Catalan origin-, earned 691 million euros in the last year, 89% more than in 2020. Growth supported by the improvement in average traffic, of 21%, which allowed it to increase its sales by 20%, up to 4,854 million, and its gross operating result (ebitda) by 28%, up to 3,351 million.
Revaluation
The A$22 per share offered by Hochtief to take 100% of Cimic represents a premium of 33.4% compared to Wednesday’s close of A$16.49. This price means valuing the Australian company at around 6,874 million euros, compared to the 5,133 million that it capitalized until yesterday. The operation, if it receives the support of the shareholders, will imply the delisting of the firm.
Florentino Pérez, president of ACS. signature
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