TheChek News Flow

Metso OYJ Awarded order from Weatherford Oil Tools; terms not disclosed 

- Weatherford Oil Tools Middle East Ltd. has chosen Metso's industry-leading valve technologies for an oil production upgrade project in the region. 

- Metso's delivery for this project will include over 100 Nelesglobe control valves, emergency shutdown valves, on-off ball valves, and Mapagbutterfly valves. Most of the control valves will be equipped with intelligent valve controllers, which ensure long-term reliability, reduce process variability and improve process efficiency. The delivery also includes intelligent safety solenoids to be used on emergency shutdown valves for partial stroke testing and diagnostics targeting improved process safety and uptime. 

- Metso's deliveries will be completed during the second quarter of 2014. Metso received these orders during 2013 and 2014. The values of these orders are not disclosed.

* Forecast EBIT rise of 46% to 2016 split between nearly two-thirds cost savings and one-third underlying trading

* Upgrading rating to Neutral (from Underweight) and raising target price to EUR44 from EUR32

>>> Raising target price on stronger ROIC recovery

- Our Underweight call since the end of January 2013 has not worked, with the shares rising

by 33% in that period, albeit outperforming the sector by only 1%. We have raised our

2014-16e EBIT forecasts by 3% on higher volume forecasts in emerging countries and

European renovation, slightly offset by lower expectations from Construction Products

activity in new US housing. Our EBIT forecasts for 2014-16 are in-line with consensus.

- r raised emerging countries volume growth forecast to compound growth of 7% to

2016 (5% previously) is based on market share gains on the back of the EUR3.6bn

investment since 2008, rather than any signals of a stronger structural upturn in the BRIC

dominated exposure. Construction lead indicator data underpins our raised forecasts for a

stronger recovery in renovation in the UK, Germany and Scandinavia (circa 28% 2013

sales) and supports our unchanged forecasts for a decline in new and renovation activity in

France, Spain and Italy (circa 30% 2013 sales).

- We are forecasting a 46% EBIT rise in the three years to 2016e comprising just over 60%

from all of the guided EUR0.8bn cost saving for 2014-15 and the balance from a 27%

underlying increase in trading EBIT, led by a 53% increase in Flat Glass from depressed

levels. Our EBIT forecasts flow to a ROIC increase from just 5.7% in 2013 to 8.7% in 2016e.

- Fairly priced on all valuation metrics

Our raised target price to EUR44 is based on raising our target enterprise value multiple

of 2016e invested capital to 1.1x (previously a 0.95x) as a result of the ROIC surplus to

our WACC estimate of 8.3%. Our target price implies a 2016e PE of 10.9x from 10.4x

currently and 2016e EV/EBITDA multiple of 5.7x from 5.6x.

The shares offer a reasonable dividend yield at 3.0% on our flat dividend forecast in

2014-15, which rises to 3.4% in 2016e on a normalised 35% payout.

Saint-Gobain HSBC Raised SGO.FR to Neutral from Underweight, price target: $44

- price target raised to €44 from €32 

- citing improved returns 

- Firm raises their 2014-16 EBIT forecast by 3% on n higher volume forecasts in emerging countries and European renovation slightly offset by lower expectations from Construction Products activity in new US housing

Avantium, the venture capital-backed Dutch renewable chemicals developer, will receive a EUR 36m investment from Coca-Cola, Danone, packing company Alpla and from Swire Pacific, a partner of Coca Cola in Asia, Dutch language daily het Financieele Dagblad wrote. CEO Tom van Aken said the company plans to prove with this new investment sum that Avantium's new bio-based plastics are suitable for large-scale industrial production.

Coca-Cola will decide this year if it will use the new plastics in its packaging. Avantium plans to construct a new plant requring investment of EUR 150m to EUR 200m. The CEO did not rule out the group taking on further investment from a large private equity or a chemical party. An IPO is also a serious option, he said.

As reported, in 2011, Avantium raised EUR 25m in a round led by new investors Sofinnova Partners, Aster Capital and De Hoge Dennen. Existing investors Aescap Venture, Capricorn Cleantech Fund, ING Corporate Investments and Navitas Capital, also subscribed. In addition, the round saw Avantium secure a EUR 5m subsidy from the Dutch Ministry of Economic Affairs.

Source Het Financieele Dagblad {http://www.avantium.com/avantium/financing.html}

{http://avantium.com/} defintely a name to keep in mind

Less than four months after they began exclusive talks, Ardian, Crédit Agricole Assurances and VINCI have finalised the creation of a company that will own 100% of VINCI Park's share capital.

Ardian (through its infrastructure business) will hold 37.5% of the new company, Crédit Agricole Assurances (through its subsidiary Predica) 37.5% and VINCI Concessions 25%. Within the next few weeks, management and employees will also be offered an opportunity to acquire an interest in the new company.

The operation is based on a VINCI Park enterprise value of EUR 1.96bn. The financial structure of the transaction will make it possible to refinance most of VINCI Park's debt.

Ardian, Crédit Agricole Assurances and VINCI plan to continue to support VINCI Park's growth, working with current management. The move is aimed at increasing the company's presence in high-growth markets such as North America, Latin America and Asia, while maintaining its leadership positions in France and other European countries.

The transaction has been finalised after consultation with employee representative bodies and approval by the relevant competition authorities.