SPAIN. Stock market attention has intensifed regarding two of Spain’s leading companies – travel retailer Aldeasa and tobacco house Altadis. [For latest Friday update click here].
Altadis is a 34.5% stakeholder in Aldeasa, the subject of a €609 million (€29 per share) full takeover bid launched by a private equity consortium in December. The Spanish National Securities Commission (CNMV) this week cleared the Compañia Gestión de Explotaciones Aeroportuarias (GEA) bid, headed by Corporacion Financiera Alba, to proceed, creating a ten-day window under Spanish stock exchange rules for Aldeasa to respond – and, just as importantly, setting the clock running for any rival offers. According to Spanish reports, the deadline for counterbids is 21 February.
One may already be about to emerge. As reported yesterday, private equity giant Advent International confirmed to The Moodie Report that it is “analysing the possibility of launching a tender offer to acquire Aldeasa”. Advent, which described itself yesterday as “strongly committed to the Iberian market”, led the majority acquisition of Aldeasa’s Swiss rival Dufry in February 2004. Pertinently, one of its partners in that acquisition was powerful Spanish company Grupo Areas, the catering-to-retail giant with which Advent has been associated for several years.
Now a third party may be set to enter the race. Banco Santander Central Hispano and Royal Bank of Scotland Group risk capital joint venture Vista Capital is studying a counterbid to GEA’s €29 per share offer, Spanish financial newspaper Expansion reported today, without naming its source.
At the time of its offer, GEA’s bid for the 21 million outstanding Aldeasa shares was based on achieving a minimum acceptance level for 16.8 million shares, representing 80% of the retailer’s capital. According to a report in El Pais, the consortium has secured sufficient funding to raise its bid for Aldeasa, as always seemed inevitable.
When it was announced on 13 December, the GEA bid was pitched at a +17.4% premium to Aldeasa’s average closing price in the past six months. On that day the retailer’s price shot up from €25.69 to €30.74. The stock closed Wednesday up +2.4% at a long-term high of €33.00 after rising +3.94% on Tuesday. Altadis shares closed at €32.60, their highest level since 5 January. Both eased in early trading today.
THE STORY TO DATE
1) THE ADVENT INTERNATIONAL INTEREST IN ALDEASA
Advent International confirms interest in Aldeasa – 19/01/05
Dufry parent Advent eyes Aldeasa bid – Spanish newpaper quotes ‘Dufry sources’ – 19/01/05
2) THE INITIAL BID
Aldeasa takeover bid underlines private equity interest in upswinging market – 14/12/04
Latest update: Aldeasa ownership in the balance as investors launch shock takeover bid – 13/12/04
3) BACKGROUND ON ADVENT AND DUFRY
Dufry deal valued “around US$200 million”; Advent closing in on more acquisitions? – 04/03/04
Advent names Julian Diaz new Dufry CEO as acquisition is completed – 01/03/04
Advent International to acquire majority stake in Dufry – 09/02/05
