Sell off on Tim. Bad guidance, no dividend. Towards the rejection of the Kkr takeover bid
AND at an all-time low, from all points of view: Tim closed the trading session down 14%below the threshold of 30 cents per share and, above all, retouching the negative record downwards. The problem is that the group ended 2021 with a loss of 8.7 billionhad to make a write-down of domestic goodwill for 4.1 billion and it extract of 3.8 billion of deferred tax assets. Collapse ofEBITDA of almost 10%. In short, not a beautiful one performance.
What the markets did not like, however, is above all the fact that there are no reserves to be distributed in the form of dividends. The ceo, Pietro Labriolahas tried to ensure that the coupons will return as soon as possiblebut the lack of return on capital weighs heavily.
Indeed, analysts were quick to reject the strategy. In particular, Akros Bank he hit hard, signaling “one huge loss and one guidance 2022 weak. Few additional information and a few concrete steps for the corporate action it’s still to respond to Kkr’s offer“. Equalweight has placed a target price at € 0.27 which is even lower than the current share price.
Despite the hopes placed by some shareholders, in particular the Asati driven by Franco Lombardi which had said it was against the operation, it seems that the stake in Inwit – of which Tim owns 30% – should happen quickly in Ardian. “We plan to arrive at the closing definitive, also through all the various steps Golden power and Antitrust, for June ”, explained Labriola. The offer of the fund “indicatively has an implied value of € 10.75 per share, all in cash“. Inwit shares today closed at 9.03 euros, stable despite yet another difficult day in Piazza Affari. It is significant to note that today the company is worth 2.5 billion more than Tim on the Ftse Mib.
Then there is from unravel the skein relating to the offer of Kkr. Today Tim is worth just over 6 billion, definitely less than the 11 that the American fund had proposed, but still less than the price with which Vivendi’s shares of the ex-Sip are recorded in the balance sheet. So what to do?
As anticipated by Affaritaliani.it, Labriola has taken his time, even if his words seem to show his intention not to accept the offer. “At the moment Kkr has made an expression of interest with numerous conditions – said Labriola -, there are elements of uncertainty that make its proposal hardly comparable with the practices of the financial market. For what little we are given to know, it seems to want to enhance the asset of the group in a way quite similar to what we are operating, that is separate the network, vertical integration and enhance the other assets, hence the provocation: if they do it externally it means that they see in this way the possibility of extracting value that I imagine is greater than 0.5 euro. It is therefore likely that this creation of value can exist even if we do it internally and in this case the delta of value generated can be redistributed to all shareholders, majority and minority“.
(Continued …)
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