Renta 4 | According to information provided by the National Securities Market Commission (CNMV), the second mandatory takeover bid launched by Neinor Homes to AEDAS Homes minority shareholders, at a fair price of €24.0 per share, has been accepted by 84.76% of the capital targeted (acceptance of 17.63% of AEDAS Homes’ share capital).
Thus, taking into account the 79.20% of AEDAS Homes’ share capital already controlled by Neinor Homes, Neinor now holds 96.83% of AEDAS’ capital.
Assessment: We consider this to be very positive news, as Neinor Homes has achieved total control of AEDAS Homes, allowing this level of acceptance to proceed with the compulsory sale (squeeze-out) of the remaining 3.17% of the capital and delist AEDAS Homes. This will facilitate the integration and combination of businesses, as it simplifies the organisational and corporate structure, thereby achieving greater efficiency.
The takeover bid for AEDAS Homes is a transformational operation for Neinor Homes, through which it will integrate one of the highest quality land banks (at a discount of around 26% on NAV after the adjustment of the second takeover bid to minority shareholders), giving rise to what will undoubtedly be the largest Spanish developer in terms of housing development capacity (approx. 40,000 homes: 24,000 wholly owned). It is also worth noting the significant increase in exposure to Madrid (one of the most dynamic regions in Spain) that Neinor will obtain with the transaction (potential for price increases and hidden value). Following the integration, Neinor will see its key financial figures more than double, with the capacity to distribute more than €500 million in dividends (2025-2027), improving ROE to >15%.
We reiterate our OVERWEIGHT recommendation with a target price of €20.60 per share for Neinor Homes.
