Holding Companies Report
- Altice (ATC NA) / Altice US (ATUS US) – Following the IPO of Altice USA last week, we are adding Altice group to our portfolio and present our SOTP analysis on the next page. On June 21 Altice USA offered 63.9m shares of its Class A common stock at a price of $30 per share. After completion of the offering, Altice will own 70.3% of Altice USA's issued and outstanding common stock, which will represent 98.3% of the voting power of Altice USA. Since the IPO shares of Altice USA increased 13% and now trade at $33.9 per share. The spread is trading at -4% and we would expect that over time it will widen to above 10%, given the extremely highleverage of the group. We expect some volatility in the short term and continue to monitor for now.
- EURAZEO (RF FP) – on June 21 Europcar Group (EUCAR FP) completed a €175 million capital increase by private placement. The company raised 14.6m shares, 10% of its share capital. Eurazeo, which is a shareholder in the company contributed €30m to the transaction and its stake in the group is now 39.2% (41.4% prior to the transaction).
Full report and an updated table of discounts to NAVs based on June 26, 2017 closing prices is attached!
Regards,
Dafna Yagur | Head of Research (Israel)
Makor Capital
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