Cnh exceeds 23 billion in market capitalization after the approval of the shareholders for the spin-off of Iveco
Cnh erasing in Piazza Affari where he wins the pink jersey in today’s stock exchange session, he touches the all-time highs over 17 euros (at € 17.27, with a gain of almost 3% one hour from the sound of the final bell) per share thanks to theappeal of the spin-off of the Iveco Group, voted by the shareholders’ meeting before Christmas and effective from the new year and ai positive reviews confirmed by financial analysts. The capitalization in Piazza Affari of the subsidiary of Exor driven by Suzanne Heywood beats the 23 billion euros (in ninth place among the big of the Milanese price list).
On December 23, the shareholders approved the transaction on Iveco, with over 99% of the votes present, and will receive one share of the spun-off company for every 5 Cnh shares held: iJanuary 3 will be the first day of listing in Milan for the Iveco stock, while the settlement of the new shares will be defined on the 4th. The perimeter of the spun off activities includes commercial vehicles Iveco, bus brands such as Iveco Bus e Heuliez Bus, participation in Nikola, vehicles Iveco Astra for the quarries and mines sector, vehicles for the military sector Iveco Defence and fire fighting Magirus and the business powertrain from Fpt Industrial.
On the occasion of‘investor day in November, management had indicated the growth prospects of the new group which aims to reach between 16.5 and 17.5 billion euros in five years (in 2026), compared to 11.8 billion in 2019, bringing the 5-6% EBIT adjusted margin (from 3.6% in 2019) and with a net profit destined to rise to around 800 million euros at the end of the plan (300 million in 2019). The separation of the current activities of Industrial Name arises from the observation of limited synergies between the two businesses (Off-Highway and On-Highway) and the desire to enhance, also in stock market terms, the different assets in the belief that investors appreciate more the “pure players“with respect to conglomerates.
Intesa Sanpaolo stay buy (buy, ed) with a target price of € 18.2 per share. In fact, despite the strong rally of the title to date, experts confirm their positive view on the CNH title and report that it spin-off it should allow the hidden value behind the business to emerge Off-highway by Cnh andupside potential of Iveco, for which the same analysts calculate a equity value of around 6 billion once the business plan is developed.
Rating buy unchanged as well by Akros Bank, with a target of 20.5 euros. “The news, positive and expected, is already taken for granted”, say the experts Mediobanca Securities which remain outperform with a target price of 19 euros. Experts see no major impact for the company from this approval as the demerger was quite expected. The deal, however, continues MB, it should be positive as it should allow the group to separate the business On-Highway from that Off-Highway, leading to a reduction in the discount holding and leaving room for Iveco for involvement in a potential deal M&A.
Meanwhile, Borsa Italiana has admitted the Iveco Group ordinary shares (Ivg) listed on Euronext Milan, organized and managed by Borsa Italiana.
