So here is the final chapter in the story of the bid for Abertis: ACS and Atlantia have agreed to share management of the new company they will create to buy Abertis, in which they will each hold a 50% stake. Both companies want to keep the current management team. The chairman will be Spanish and Abertis’ HQ will be in Madrid. After the CNMV’s approval of Hochtief’s bid on Monday 12 March, the acceptance period will begin once the offer is published in the press over the next few days. From then on, Abertis’ shareholders will have 30 days to accept the offer. In the interim, Atlantia will withdraw its bid and the one launched by Hochtief/ACS will be modified to accommodate the Italian firm. The bidders can modify the terms of the offer up to five days before the acceptance period ends.
The current offer is 18,36 euros/share in cash and/or 0,1254 shares of Hochtief for every Abertis share, up to a maximum number of Hochtief shares representing 19.54% of capital. In other words, Abertis’ shareholders can opt for the cash offer, for the share exchange or a mix of both. If those opting for the share exchange exceed 19.54% of Hochtief’s capital, there will be a prorateo of the number of shares handed over.
These conditions could vary with Atlantia’s involvement, but the bidders have already said they will not improve the cash offer.
Bankinter believes the best option is to SELL 100% of the position in Abertis within the range of 18,50/19,00 euros.
In addition to the fact that because the joint bid is a combination of cash and shares, which is always less attractive than receiving 100% in cash selling now against the market… the “time effect” has value (although it is reduced now that interest rates are extremely low) because selling further on is not the same as selling now (we would lose the “time value” of the money.