European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>Hochtief offers A$22/share in cash, a 33% premium to the closing share price on the prior day, and the offer is final. The offer is a relatively low amount.</li>
<li>The deal should complete. The premium is generous, as the 15.4x P/22e E paid is high given that Hochtief and ACS are trading at 9.9x and 11.3x, respectively.</li>
<li>ACS trades at 27% discount to NAV. Holding structure rationalization and c. €5 billion received should be a catalyst for discount tightening. Long 1 ACS SM/short 0.4162 HOT GR.</li>
</ul>


Hochtief offers A$22/share in cash, a 33% premium to the closing share price on the prior day, and the offer is final. The offer is a relatively low amount.
The deal should complete. The premium is generous, as the 15.4x P/22e E paid is high given that Hochtief and ACS are trading at 9.9x and 11.3x, respectively.
ACS trades at 27% discount to NAV. Holding structure rationalization and c. €5 billion received should be a catalyst for discount tightening. Long 1 ACS SM/short 0.4162 HOT GR.


ACS/Hochtief/CIMIC: Rationalization of Holding Structure

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hochtief-ag" target="_blank" data-smartkarma-citation="entities:21652:1" rel="noopener">Hochtief AG (HOT GR)</a> announced an unconditional off-market takeover offer for <a href="https://www.smartkarma.com/entities/cimic-group-ltd" target="_blank" data-smartkarma-citation="entities:20030:1" rel="noopener">CIMIC Group Ltd (CIM AU)</a> at A$22.00 cash per share, a 33.4% premium to the last close price. </li>
<li>The offer’s implied forward EV/EBITDA multiple is at a discount to peer multiples. However, the offer is attractive compared to historical and transaction multiples.  </li>
<li>The offer presents a reasonable exit for minorities tired of the weak share price due to years of troubled contracts.</li>
</ul>



Hochtief AG (HOT GR) announced an unconditional off-market takeover offer for CIMIC Group Ltd (CIM AU) at A$22.00 cash per share, a 33.4% premium to the last close price. 
The offer’s implied forward EV/EBITDA multiple is at a discount to peer multiples. However, the offer is attractive compared to historical and transaction multiples.  
The offer presents a reasonable exit for minorities tired of the weak share price due to years of troubled contracts.


CIMIC in an Off-Market Takeover Bid by Hochtief

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hochtief-ag" target="_blank" data-smartkarma-citation="entities:21652:1" rel="noopener">Hochtief AG (HOT GR)</a> has finally launched an unconditional offer for the rest of <a href="https://www.smartkarma.com/entities/cimic-group-ltd" target="_blank" data-smartkarma-citation="entities:20030:1" rel="noopener">CIMIC Group Ltd (CIM AU)</a> (where it already owns 78.58%).</li>
<li>As <a href="https://www.smartkarma.com/profiles/david-blennerhassett" target="_blank" data-smartkarma-citation="accounts:840" rel="noopener">David Blennerhassett</a> writes in <a href="https://www.smartkarma.com/insights/hochtief-s-unconditional-offer-for-cimic" target="_blank" data-smartkarma-citation="insights:65774" rel="noopener">Hochtief's Unconditional Offer For CIMIC</a>, this should be a done deal. Completion would free up a place in the S&amp;P/ASX200.  </li>
<li>This looks to be one of the earlier Q2 intra-quarter changes, but there are technicalities.</li>
</ul>



Hochtief AG (HOT GR) has finally launched an unconditional offer for the rest of CIMIC Group Ltd (CIM AU) (where it already owns 78.58%).
As David Blennerhassett writes in Hochtief's Unconditional Offer For CIMIC, this should be a done deal. Completion would free up a place in the S&amp;P/ASX200.  
This looks to be one of the earlier Q2 intra-quarter changes, but there are technicalities.


David Blennerhassett

<ul>
<li>
<a href="https://www.smartkarma.com/entities/acs-actividades-de-construccion-y-servicios" target="_blank" data-smartkarma-citation="entities:21242:1" rel="noopener">Actividades de Construcción y Servicios (ACS SM)</a> , via 52.3%-held <a href="https://www.smartkarma.com/entities/hochtief-ag" target="_blank" data-smartkarma-citation="entities:21652:1" rel="noopener">Hochtief (HOT GR)</a>, is offering $22/share for all <a href="https://www.smartkarma.com/entities/cimic-group-ltd" target="_blank" data-smartkarma-citation="entities:20030:1" rel="noopener">CIMIC (CIM AU)</a> shares it does not own. The Offer is unconditional.</li>
<li>The Offer Price is a 33% premium to last close. The price will not be increased. </li>
<li>Hochtief intends to exercise its right to on-market purchases. CIMIC's board has yet to comment on the Offer.</li>
</ul>



Actividades de Construcción y Servicios (ACS SM) , via 52.3%-held Hochtief (HOT GR), is offering $22/share for all CIMIC (CIM AU) shares it does not own. The Offer is unconditional.
The Offer Price is a 33% premium to last close. The price will not be increased. 
Hochtief intends to exercise its right to on-market purchases. CIMIC's board has yet to comment on the Offer.


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hochtief-ag" target="_blank" data-smartkarma-citation="entities:21652:1" rel="noopener">Hochtief AG (HOT GR)</a> holds 78.58% of <a href="https://www.smartkarma.com/entities/cimic-group-ltd" target="_blank" data-smartkarma-citation="entities:20030:1" rel="noopener">CIMIC Group Ltd (CIM AU)</a> and has made an offer to acquire the remaining shares at A$22/share.</li>
<li>Hochtief will squeeze out the remaining shareholders once it holds more than 90% of the shares in <a href="https://www.smartkarma.com/entities/cimic-group-ltd" target="_blank" data-smartkarma-citation="entities:20030:1" rel="noopener">CIMIC Group Ltd (CIM AU)</a>. </li>
<li>We think the offer is fair and expect the stock to open close to A$22/share tomorrow. There could be ad hoc inclusion to the ASX200 index in May or June.</li>
</ul>



Hochtief AG (HOT GR) holds 78.58% of CIMIC Group Ltd (CIM AU) and has made an offer to acquire the remaining shares at A$22/share.
Hochtief will squeeze out the remaining shareholders once it holds more than 90% of the shares in CIMIC Group Ltd (CIM AU). 
We think the offer is fair and expect the stock to open close to A$22/share tomorrow. There could be ad hoc inclusion to the ASX200 index in May or June.


CIMIC (CIM AU) Takeover Offer: Should Get Done; Index Implications

Germany

Hochtief AG provides construction and construction related services worldwide. The Company finances, designs, builds, constructs and operates a wide variety of facilities through its five divisions; Airport, Development, Construction Services Americas, Construction Services Asia Pacific, and Construction Services Europe.

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Hochtief AG (HOT GR)

ACS/Hochtief/CIMIC: Rationalization of Holding Structure

The offer is well timed, as CIMIC shares had been trading at seven-year lows prior to the offer. Gross spread is nearly inexistent, but worth...

Jesus Rodriguez Aguilar

CIMIC in an Off-Market Takeover Bid by Hochtief

Hochtief announced an unconditional off-market takeover offer at A$22 cash per share, a 33.4% premium to the last close. The offer presents a...

Arun George

CIMIC (CIM AU) Replacement in ASX200

CIMIC's takeover by Hochtief triggers another index change in ASX200 - likely sometime in April. This brings forward the first intra-quarter ASX200...

Travis Lundy

Hochtief's Unconditional Offer For CIMIC

Hochtief has announced its intention to make an unconditional and final offmarket Offer for CIMIC at $22.00/share. This looks done and will...

David Blennerhassett

CIMIC (CIM AU) Takeover Offer: Should Get Done; Index Implications

Hochtief has offered to buy the shares it does not own in CIMIC at A$22/share. At a one year high and in line with peer valuation, we think this...

Brian Freitas

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ACS/Hochtief/CIMIC: Rationalization of Holding Structure

The offer is well timed, as CIMIC shares had been trading at seven-year lows prior to the offer. Gross spread is nearly inexistent, but worth...

Jesus Rodriguez Aguilar

CIMIC in an Off-Market Takeover Bid by Hochtief

Hochtief announced an unconditional off-market takeover offer at A$22 cash per share, a 33.4% premium to the last close. The offer presents a...

Arun George

CIMIC (CIM AU) Replacement in ASX200

CIMIC's takeover by Hochtief triggers another index change in ASX200 - likely sometime in April. This brings forward the first intra-quarter ASX200...

Travis Lundy

Hochtief's Unconditional Offer For CIMIC

Hochtief has announced its intention to make an unconditional and final off­market Offer for CIMIC at $22.00/share. This looks done and will...

David Blennerhassett

CIMIC (CIM AU) Takeover Offer: Should Get Done; Index Implications

Hochtief has offered to buy the shares it does not own in CIMIC at A$22/share. At a one year high and in line with peer valuation, we think this...

Brian Freitas

Hochtief has announced its intention to make an unconditional and final offmarket Offer for CIMIC at $22.00/share. This looks done and will...