Renta 4 | Naturgy (NTGY) has carried out an accelerated placement of approximately 2% of its capital, 19.3 million shares held in treasury, for approximately €500 million. This represents a price per share of €25.9 and a discount of 7.1%.
In addition, it has agreed to sell up to 34.1 million shares, also held in treasury, representing approximately 3.5% of the capital, to an international financial institution.
Naturgy has entered into a total return swap agreement with the financial institution that has acquired the capital, on the shares subject to the bilateral sale agreement. Under this agreement, the financial institution will retain its 3.5% exposure.
Once the transactions have been completed, Naturgy expects to hold approximately 4.5% of the share capital (close to 43.5 million shares) in treasury.
Assessment: With these two transactions, Naturgy expects to increase the free float to approximately 15.1% of the share capital. This increase is intended to promote the liquidity of the share in order to facilitate its inclusion in the main stock market indices, including in particular those of the MSCI family.
We expect a negative reaction from the share price, which should adjust to the accelerated placement price.
Underweight. Target price: €26.1/share.
