Purchased from Exor for 6.7 billion dollars And resold at 9, after earned 900 million in dividends. The sale with a hefty $ 3.2 billion capital gain (including the flow of detached coupons) of the reinsurance giant PartnerRe by the holding of the Agnelli family to the group of French policies Covea gives wings to the Exor title that in Piazza Affari, it immediately clicks to the sound of the bell with a gain of 2.31% at 82.38 euros.
Yesterday the company led by John Elkann has signed a memorandum in agreement for the sale of the subsidiary to the company chaired by Thierry Derez. A deal that the two groups had already tried to sign last year at the same price, operation then skipped due to the onset of the pandemic and the backward step of the transalpines.
A year and a half later, the decision to hold on and not interrupt the dialogue has paid off. The memorandum expects the price to be paid in cash in mid-2022. Consideration which is based on an equity value of PartnerRe of 7 billion dollars, which with the closure of the 2021 budget will see adjustments.
Not only that: the parties have agreed to extend the collaboration agreements signed in August 2020, when the thaw had begun. In fact, Exor will acquire Covea’s stakes in special reinsurance vehicles managed by PartnerRe for 725 million dollars and the two companies will continue to invest in funds managed by Exor.
“With the sale of PartnerRe for $ 9 billion, the Exor Nav goes up by 5% and the discount to 36%, the net financial position passes from a debt of 3.1 billion euros to a cash for over 4 billion (equal to 14% of the Nav), the theoretical investment capacity rises to 8-9 billion and the capital gain tax-free is about $ 3.2 billion, since Exor bought it in 2016 for $ 6.7 billion“, comment the Equita analysts, which include among the most probable scenarios for the use of cash “the distribution of an extraordinary dividend, diversification in the luxury sector where Exor has already made two investments in the last year (Christian Louboutin and Shang Xia in China which together represent 2% of the Nav, without forgetting the rumors about Armani) and the buy-back in a subordinate position”.
#Exor #PartnerRe #Covea #billionThe #sale #stock #fly