TheChek News Flow

EuropaCorp confirms options under review include additional assets sale, recapitalisation

27 NOV 2017

EuropaCorp SA [EPA:ECP] announced, it has noticed various rumors in the press concerning EuropaCorp and its strategic intentions to date. In response to these market rumors, EuropaCorp reminds its priority strategic objectives and specifies the scope of its current reflections.

The Company’s strategy is primarily to refocus on core business: production of English-language feature films of up to 2 to 3 films per year, production of French-language feature films of 2 films per year, production of English-language TV series, distribution of films and international sales. These are the fundamentals which have made EuropaCorp’s success.

Within this strategy, the Company is considering different options:

Sale of non-strategic assets: the Company has already sold most of its non-strategic assets i.e. the Multiplexes activity (for around EUR 20m), the catalogue of music rights (for around EUR 15m) and the French television activity (for EUR 11m), in the process of finalization. Following on from the sales already realized, the Company pursues its reflection on potential additional sales, circumscribed to all or part of the postproduction activity and/or of the catalogue of films Roissy Films.

Reduction of G&A expenses: by refocusing on its core business, the Company anticipates a decrease in overheads to a level more consistent with the volume of films and TV series activity.

Reinforcement of financial strength: the Company has already increased its financial capability by realizing the above-mentioned sales and by the EUR 60m capital increase to Fundamental group in November 2016. Given the cost of debt and maturity of its credit lines (October 2019 for the senior and April 2020 for the secondary), the Company is carrying out an in-depth reflection on a potential recapitalization and/or a restructuring or refinancing of its debts. The Company reckons that the perspectives offered by the strategic reorientation, the resources cleared by the sales of assets and the reduction of overheads, represent an attractive opportunity for potential financial and/or business partners.

These reflections are still preliminary at this stage and no concrete transaction can be announced. The Company will keep the market informed of the evolution of the potential sales and of the results of its reflection on its financial structure.

Dieselgate : ce que révèle l’enquête sur Fiat Chrysler

« Le Monde » divulgue le contenu de l’enquête pour « tromperie aggravée » qui vise le constructeur italo-américain, soupçonné d’avoir manipulé les moteurs de certains de ses modèles pour satisfaire aux tests d’homologation.

En savoir plus sur http://www.lemonde.fr/planete/article/2017/11/27/dieselgate-ce-que-revele-l-enquete-sur-fiat-chrysler_5220746_3244.html#xCisT02Xw2965rrX.99

Le montant figure noir sur blanc dans le procès-verbal d’infraction de la Direction générale de la concurrence et de la répression des fraudes (DGCCRF) auquel Le Monde a eu accès. Ce document synthétise les faits reprochés à FCA. Il est la pièce centrale de l’information judiciaire ouverte en mars 2017 pour « tromperie aggravée » par le procureur de la République, et confiée à trois juges du pôle santé publique du tribunal de grande instance de Paris.

A l’instar de Peugeot mais aussi de Renault et Volkswagen – par qui le scandale est arrivé en 2015 –, FCA est soupçonné d’avoir manipulé les moteurs de certains de ses modèles diesel pour satisfaire aux tests d’homologation en dissimulant les vrais niveaux d’émission d’oxyde d’azote (NOx), un groupe de gaz très toxiques.

« Stratégie d’entreprise »

Parmi les véhicules concernés par ce que les enquêteurs caractérisent comme « une fraude au test antipollution », se trouvent les deux best-sellers de la marque : la Jeep Cherokee et la Fiat 500X. Ils ont calculé le chiffre d’affaires concerné par ce « dispositif frauduleux » de la vente en France (en 2014, en 2015 et en 2016) des modèles de la dernière génération (Euro 6). Il s’élève à 151 690 214 euros.

A la différence de ses concurrents, l’italo-américain est également visé par une information judiciaire pour « obstacle aux fonctions d’un agent habilité à constater les infractions au code de la consommation ». Il risque à ce titre une amende de 300 000 euros et une peine allant jusqu’à deux ans de prison. « Responsable...

En savoir plus sur http://www.lemonde.fr/planete/article/2017/11/27/dieselgate-ce-que-revele-l-enquete-sur-fiat-chrysler_5220746_3244.html#xCisT02Xw2965rrX.99

Rare public intervention reflects belief Europe could be left behind in networks’ race

Some of the world’s largest telecoms investors have warned that proposed European regulations will deter investment just as the industry is under pressure to spend heavily to build faster fibre optic and 5G networks across the continent.

The rare public intervention by institutional investors reflects a belief that Europe could be left behind in the race to build infrastructure.

The European Commission had proposed loosening the rules to encourage investment, having estimated a €155bn funding shortfall. But the European Parliament and Council of Ministers added amendments that could result in new entrants to the market, such as Vodafone and Liberty Global, being regulated as if they were an incumbent such as BT or Deutsche Telekom.

Chris Whitehouse, an investment analyst at T Rowe Price, which has $971bn of assets under management, said: “We believe the potential introduction of regulation that risks the opening up of private networks will act as a disincentive for companies to invest capital expenditure. We want the status quo, ensuring the much needed investment in fibre continues.”

Mandana Hormozi, portfolio manager at Franklin Mutual Series, which has $752bn of assets under management, said: “Capital investments into infrastructure are the lifeblood of telecom companies — without advanced networks there is no pipeline of opportunity, but if you undercut the opportunity then there is no incentive to invest.”

Investors have become concerned that telecoms regulation in Europe has held the sector back and allowed US and Asian technology companies to build huge businesses that rely on the networks but are not regulated in the same way, if at all.

European consumers spend less on phone bills than they did a decade ago partly because new rules have cut some charges but cumulatively they spend more because of the higher cost of smartphones.

Carla Foucaud, telecoms analyst for Boussard & Gavaudan, a boutique investment fund, said: “Europe stands out as having some of the lowest access costs for citizens, creating savings that have effectively fuelled entire generations of smartphone upgrades. Citizens would benefit much more from having leading-edge connectivity.”

Bruno Lippens, senior portfolio manager at Pictet Asset Management, said: “We invest in European telcos for their ability to take costs out. In a deflationary environment, the only way to survive is by having the lowest and most flexible cost base. The current regulatory environment in Europe doesn’t reward investments in the type of innovation that is happening in the US and China.”

ML

EULER HERMES - Allianz buying minorities out at price of e122/ share (122).+20%

DELIVERY HERO - Revs 6% above cons. Guidance for FY upgraded to top end (39)+3%

ICADE - Development pipeline expanded to €1.7b. Lifts guidance for CF (79)..+2%

AROUNDTOWN - FFO/shr for the 9M to Sept +44% to €0.26. Strong growth (6.2)..+2%

AVIVA - Sunday Times reporting the possibility of a £1bn buyback (504.4)....+1%

FIAT - FCA: Magneti Marelli may be valued at EU4b-EU5b in IPO; Sole (14.89).+1%

MORGAN SINDALL - Partnership Homes div wins a contract worth £250mn (1410)..+1%

LONDONMETRIC - Sells 2 retail/leisure assets for £19m, c15% premium (181).+0.5%

STORA ENSO - Proposed restructuring of forest asset investment Skog (13.35).u/c

GECINA - Announces disposal of “Le Ponant” complex for €55.5m to Icade (138)u/c

COMMERZBANK - UBS forms strategic team to evaluate buying parts of biz (12).u/c

MINERS - Copper -1.11%, Iron ore -1.7% with BHP OZ -0.07% and RIO OZ -0.01%.-1%

ARYZTA - Org growth -2.6% v c-3.8%. North America org rev declined 7% (30.1)-3%

J.BAER - Boris Collardi resigning as CEO, leaving with immediate effect (58)-4%

CS

Aryzta +1-2% Q1 revs 909.7mln vs cons 906.5mln, outlook inline

Aviva +1-2% Sunday Times suggesting more than £1bn buyback

BMW -0.5% Sees R&D to sales ratio at 6.5-7% in 2018, did see 6%

Bucher -1% CFO has resigned, names Manuela Suter new CFO

Fiat +0.5% Press spec of sale of the group's Magneti Marelli

division

Julius Baer -2-3% CEO Resigns as Bernhard Hodler Takes Over as CEO

Miners UNCH Copper -0.90%, Brent +0.55%, Iron Ore -1.15%, China

-1.30%

Meyer Burger R Offers to Convert CHF100m 5.5% Convertible Due 2020

Nat Grid +1% CS UPGRADE to NEUTRAL (Valuation, been U/P for 3 years)

MainFirst Pre Mkt Indications

*BMW-To spend €1.5b more than planned in R&D says CFO-H/Blatt.........-0.5% 

*BAER-Bernhard Hodler becomes CEO immediate effect,Collardi 2 Pictet..-4%

*ARYZTA-Q1 Rev 909.7m(906.5),OG -2.6%(-4.1),Sees Ebitda flat..........+0.5% 

*CBK-UBS team examing options,lking at Private Banking/Digital........+1% 

*SINGULUS-10% Cap increase €8.08m to take place in Q4.................-4% 

*FIAT-Magneti Marelli may be valued at €4b-€6b in IPO - Sole..........+0.5% 

*AIRBUS-Set to poach Rolls exec(Eric Schulz)2 hd jetliner sales.......U/C 

*LINDE-Reached 90% threshold of tendered shs(squeeze out no dec)......-0.25% 

*ROCHE-Diagnostics CEO sees investments in New Tech - SamW............+0.25% 

*NOVARTIS-Ultibro Breezhaler improved lung function in study..........+0.25% 

*AROUNDTOWN-9M FFO I €204m,9m Net Income €1.1b,Adj Ebitda €303m.......+0.5% 

*STABILIUS-FY Rev 910m(911.8),NI 79.2m(93.1),Ebit 137.6m(136.9).......-2% 

*DEL HERO-Q3 Rev 137.9m(130),FY Rev 530-540m(540),Margin 17%(17.1)....+0.5% 

*AIR FRANCE-Dispute with SNPL Pilot Union at domestic subsid Hop......U/C

Nikkei -0.24% Hang Seng -0.73% CSI -1.52% Shanghai -1.12% Shenzen -1.63%

Eur$ 1.1920 CNH 6.6005 CNY 6.6054 JPY 111.43 GBP 1.3312 CHF 0.9808 RUB 58.3952 WTI$ 58.62 -0.56%

S&P -0.08% EuroStoxx -0.28% FTSE -0.14% DAX -0.21% SMI -0.06%

* Ingenico Group Raised to Equal-weight at Morgan Stanley