Leonardo, through the US subsidiary Leonardo Drs, has signed a binding agreement for sell the Global Enterprise Solutions business to Ses, Luxembourg provider of satellite and terrestrial telecommunications networks. The value of the transaction amounts to 450 million dollars, gross of taxation, but the figure is subject to "customary adjustments based on the level of working capital at closing", Leonardo points out in the note.
The sale should be completed by the second half of 2022 and is subject to “the typical authorizations for this type of operation”.
Despite this transaction, Leonardo confirms the 2022 guidance on net debt of the group, equal to approximately 3,1 billion euro.
CEO Profumo's comment
“The sale of the GES business is a further step forward in the execution of the industrial plan – he commented Alessandro Profumo, CEO of Leonardo – we are optimizing our portfolio and continuing to focus on our core business. The transaction announced today also confirms the commitment to achieve our objectives, in line with the 2022 guidance. I am also sure that SES is the best industrial partner to ensure the long-term development of GES's business, to the benefit of all our stakeholders".
Leonardo's share on the Stock Exchange
In the wake of this news, at the end of the morning Leonardo's share on the Stock Exchange extends beyond 9 euros in value (+0,9%, to 9,098 euros, in line with the performance of the FtseMib). The quotation is confirmed at its highest level for two years.
Analyst ratings
According to analysts of Imi Bank, the agreed price for the sale of Ges is higher than expected and for this reason, even if the management has kept the guidance on debt unchanged, the investment house believes that the completion of the sale could have a positive impact on the stock, which can be valued at 0,50 euro against a current price target of 10,7.
Banca Akros, even if Ges numbers are not known, the division's revenues can be estimated at around 250 million dollars: for the broker, the operation is positive for Leonardo and seems to avoid recourse to capital increases by the group while remaining on the flat the other operations (the IPO of Drs and the sale of Oto Melara and Wass) able to bring cash.
