Renta 4 | ACS could sell its renewables subsidiary Zero-e after the Easter break. This is a firm with 2.900 MW in operation and development. The value of the deal, according to the press, could be around 1 billion euros. And the transaction could mean ACS will give up control of the company. Valuation: There are no details on the assets which are currently under manangement or on the portfolio…
Renta 4 | Técnicas Reunidas, in a consortium with TSK and Siemens Energy, has won a contract to develop two combined cycles in Mexico. The contract was awarded by the state-owned entity Comisión Federal de Electricidad de México. Last week, it awarded the consortium formed by Técnicas and TSK the construction of another two combined cycle plants. The contract is worth 337 million dollars (310 million euros) and includes the…
Renta 4 | Possible new measures to bring the price of electricity down. According to the press, the Ministry of Ecological Transition will force the four big producers (Iberdrola, Endesa, Naturgy and EDP) to sell 6% of its generation to provide liquidity for bilateral contracts. The aim is to link 10% of the PVPC to the result of these auctions. Whatsmore, the implementation of the Recore is being considered, making…
Norbolsa | BBVA has reached an agreement with Neon Payments Limited to acquire approximately 21.7% of its capital. The deal will be clinched via a capital increase and a payment from the Spanish bank of around $300 million. The Company, set up in the UK where it also has its headquarters, fully owns the Brazilian company Neon Pagamentos S.A. As of the date of this communication, BBVA is already the…
Morgan Stanley | According to our macroeconomists, the yield on the German bond could reach 0,6% at year-end. If this happens, it would be very negative for various stocks in the real estate sector. Over the last decade the correlation between property companies and the bond yield has been strong. So a rise of 38 pb would add a lot of volatility. This could lead to corrections of around 20%…
Banca March | The board of CADE, Brazil’s competition body, has given the green light to the sale of Oil Movel, the fixed line business belonging to the country’s fourth fixed line operator Oi. It has been bought by the consortium formed by Telefónica – it operates under the Vivo brand in Brazil – Italy’s TIM and Mexico’s Claro. We should recall that the combined offer from Telefónica, TIM and…
Morgan Stanley | The European banks are the most sensitive to rate movements. So pricing in a hike of 50 bps (in line with my macro) implies an over 9% upside for 2023 profits and an increase in ROTE of some 70 bps. This means a >10% upside on the sector valuation. Whatsmore, the sensitivity is even greater in the peripheral banks, particularly the Spanish, Italian and German lenders. For…
Renta 4 | According to some media, Repsol may have put up for sale its stake in the Duvernay basin, in the west of Canada, which is still in the first phases of development. The 688 km2 in Duvernay could fetch a price of some 750 milion Canadian dollars. Repsol also has assets in the basins of Greater Edison and Chauvin in Alberta. Valuation: It is already common knowledge since…
Intermoney | ACS (ACS) and OHLA (OHLA), contracters in the state of Maryland (United States) involved in the construction of a light train in the metropolitan area of Washington, will see their budget for this project increased by 1.2 billion euros. This will address the rise in prices which has happened since the contract was tendered, according to the daily newspaper Expansion. The initial budget was 1.743 billion euros. Maryland…
Intermoney | Ferrovial, via its affiliate in India, IRB, has won one of the biggest contracts for a motorway concession in that country. The project is for a 127 km long motorway corridor in the state of Uttar Pradesh, which will require an investment of 800 million euros. The duration of the concession is 36 years and it will receive a public subsidy of 200 million euros. IRB is listed…