For Unieuro it was a cold shower, but in Stock market the stock soars. Without a preliminary agreement, the Italian distributor of consumer electronics and household appliances ended up in the crosshairs of French competitors of Fnac Darty that they launched, in combination with the investment vehicle Ruby Equity Investment anmixed bid (cash and card) for 100% of the group. Darty is Fnac's first shareholder Czech billionaire Daniel Kretinski: 49-year-old former investment bank lawyer, CEO of Eph, the largest energy group in Central Europe, boasts a net worth – according to Forbes – which amounts to $9,4 billion. Well, Unieuro has been evaluated 12 euros per share, with a premium of 42%, equal to 249 million euros in capitalisation. On the stock exchange, the stock listed mid-session up more than 36% to 11,24 euros, adapting to the price of the takeover bid.
The French: a hub worth over 10 billion will be created
The proposal, is explained by French, is not to be considered hostile. The union would create a leading pole in the consumer electronics, household appliances, publishing products and services sectors in Southern and Western Europe, with 10,5 billion in revenue, EBIT of 226 million, 30 thousand employees and more than 1.500 stores, the French group said in a statement. Once fully operational, the expected synergies are 20 million, while theexpected impact on earnings per share is estimated above 10% by 2025. The combined entity would hold the first or second position in its major markets. Second Enrique Martinez, CEO of Fnac Darty, “this project represents aunique opportunity for Fnac Darty to continue to pursue its long-term ambition to consolidate its markets and strengthen its business model at a European level."
A tempting prize: here are the proposed prices
The takeover bid is of a type misto: the French propose 9 euro cash and 0,1 Fnac shares which yesterday were listed on the Euronext Paris stock exchange at around 30 euros for each Unieuro share. If 100% of the shareholders adhere, approximately 2 million new Fnac shares should be issued to those adhering to the takeover bid, which would represent approximately 6,6% of the French group at the end of the operation.
The price proposed by Fnac incorporates a 42% bonus compared to the weighted average price at the close of July 15th (the session preceding the announcement) and 34% compared to the levels of the last three months. It is also very far from the peak of over 30 euros to which the stock soared in the Covid months, in the wake of the strong demand for new electronic devices. It will be necessary to see whether the premium will be of interest, given that to find the title around the 12 euro threshold you have to go back to January 2023.
The participation in Unieuro, now led by the CEO Giancarlo Nicosanti Monterastelli, will be held by a vehicle 51% controlled by Fnac and 49% by Ruby Equity. Furthermore, yesterday Fnac revealed that it already owns 4,4% of Unieuro shares.
Unieuro convenes an emergency board of directors
The offer was not preceded by a agreement with the main shareholders of Unieuro among whom they appear Iliad at 12,2%, the founding family Silvestrini to 6,2% e Amundi at 5,8%. He was summoned last night a board of directors urgently of Unieuro from president Stefano Meloni which has taken note of the takeover bid, reserves any evaluation in this regard and confirms that "it will take the relevant resolutions within the expected timescales", is written in the note released last night.
Unieuro is the Italian leader in consumer electronics and household appliances with a market share of 17%. Last January it cut its revenue forecast for the full year 2023/2024, after reporting a year-on-year sales decline in the first nine months. In the first quarter of this year, seasonally not very representative for the consumer electronics sector, it recorded revenues of 533,9 million euros, down 7% compared to the corresponding period of the previous year. Unieuro has a dense network of integrated and affiliated stores throughout Italy, with a significant presence in the North and Center of the country (71% of stores). Furthermore, Unieuro is developing the service activities, including the integration of Covercare, specializing in home repairs and services.
