After the “war” between Atlantia and ACS for Abertis, now a new counter-bid could be launched to the Spanish market: the one of NH Hoteles’ leading shareholder, China’s HNA (with 28.2% of capital), for the hotel chain which improves on that made by Barceló.
Endesa’s new strategy will improve the group’s long-term visibility and allow dividends to be sustained thanks to its robust cash generation. A minimum dividend of 1,32 eur/share in 2017 and 1,33 eur/share in 2018 has been confirmed. This implies a dividend yield 2018 estimated of 7% (higher than the sector average of 5%).
The Financial Stability Board (FSB) has updated its list of global systemic banks and Santander remains the only Spanish bank in the new classification.
US commercial banks are trading at a discount of over 25% with respect to the market as a whole (S&P 500) in terms of PER 2018e. Fundamentals are solid and the Fed’s monetary policy heralds a good performance from their profit and loss accounts in 2018 and 2019.
Red Eléctrica de España (REE) plans to put into service in 2025 the underwater electricity link with France. This new electricity interconnection will allow the exchange capacity between Spain and France to increase to 5.000 MW compared with the current 2.800 MW.
Hotel chain Barceló has proposed a merger deal with NH Hoteles whereby it would own 60% of the new group. The tie-up of the two chains would create a sector leader in Spain and the third biggest hotel chain in Europe.
The Public Works Ministry has approved a plan to optimise the value of 2000 hectares of land around Aena’s airports. The sale of these lands should provide substantial capital gains and/or rental revenues in a favourable real estate cycle.
Iberdrola has asked the Energy Minister to authorise the closure of its thermal power plants in Lada, Asturias and Velilla in Palencia, the only two operational coal power plants the group has left. With their closure, it will conclude the process of shutting down its thermal plants across the globe.
Ferrovial has been awarded the contract to change the Manchester street lighting system, substituting it for one with LED technology. As a result, the city will reduce its energy spend by some 2 million pounds (2.25 million euros) a year, according to the company.
Repsol is the Spanish firm with the biggest exposure to Venezuela, which S&P has said is in selective default for failing to make $200 million in overdue coupon payments on its 2019 and 2024 global issues.