Enel becomes electrified on the stock exchange with Open Fiber thanks to Macquarie

Enel becomes electrified on the stock exchange with Open Fiber thanks to Macquarie

Macquarie's move on the share of Open Fiber held by Enel. The discussions on the board of directors, analyst reports, the effect on the stock exchange on the stock of the Starace group on the stock exchange and the scenarios on the unit network dossier.

Does former Enel number one, Fulvio Conti, contribute indirectly to electrifying the Enel stock on the stock market?

This is the – very ironic – demand that circulates today among some operators in Piazza Affari, given the performance of the energy group's share on the stock exchange in the wake of the rumors of the offer of the Macquarie fund on the share of Open Fiber held by the group headed by the administrator delegate, Francesco Starace.

And this is because among the advisors of the Australian infrastructure fund there is, among others, the former Fulvio Conti, former CEO of Enel.

The Macquarie fund, which presented a non-binding manifestation of interest to Enel for its 50% stake in Open FIber, would estimate – according to circular rumors in recent days – 100% of the 7 billion company, a very high value according to analysts who so far had speculated a fork between 3 and 6 billion euros.

For Enel – Ansa points out – it would mean a large capital gain on the investment which at the end of 2019 had a book value of about 400 million euros and on the stock market the stock is up 2.54% to 7.66 euros while Tim earns 1.14% at 0.37 euros.

According to Equita, which had assessed Open Fiber 4.8 billion "at the valuations that – according to Bloomberg – Macquarie would have recognized Open Fiber in the non-binding offer, the merger would destroy value for Tim (0.1 billion) while the potential revaluation of the value FiberCop could still bring a 20% upside to our target ".

According to the evaluations of Equita (which had assessed Open Fiber 4.8 billion) the merger with FiberCop, the vehicle in which TIM's secondary network will be conferred and to which KKR will enter with 40%, would generate important synergies, close to 2 billion and "would bring out the value of the asset, now drowned in the group and with a higher competitive risk and therefore implicitly priced like the rest of the group" or with a multiple of 5 times the ratio between Equity Value / Ebitda while post aggregation would be 10 times.

There are two former top managers of the Enel group among the advisors of the Australian fund which aims at the share of Enel held in Open Fiber (jointly controlled by Enel and Cassa Depositi e Prestiti).

Il Sole 24 Ore wrote today: “Among the consultants of the Australians there would be Tommaso Pompei, ex-CEO of Wind and Tiscali, but also architect in 2015 of the start of Enel 's realization of the newco for the construction of the network in fiber. Pompeii left Open Fiber at the end of 2017 and would have been enlisted by Macquarie, who in Italy already availed himself of the collaboration of Fulvio Conti , in turn former Enel CEO . The field of consultants, according to rumors, would be completed on the financial side by Macquarie Capital and, on the legal side, by Cleary Gottlieb. Macquarie himself was among the stakeholders in January in the single network plan launched by Telecom: then on that front, for the secondary network, Kkr was chosen. So Macquarie knocked directly on Open Fiber ”.

In recent days, Enel has officially confirmed the existence of an offer from the Australian infrastructure fund Macquarie to buy 50% of Open Fiber, news reported the day before from Repubblica : « Enel informs that the board of directors of the company, in the session of 10 June 2020, received information on a non-binding offer submitted by Macquarie Infrastructure Real Asset concerning the acquisition, in whole or in part, of 50% of the capital of Open Fiber owned by Enel . At this meeting, the board of directors took note of the information received, looking forward to being updated on subsequent developments ».

It must be said, as Sole 24 Ore has concluded, that Macquarie's offer reaches a new board of directors that is much more sensitive to the prospect of a merger between Tim's network and that of Open Fiber.

The dossier on the unitary network remains in the background: but not everyone agrees with Tim's control of the future unique company for the network .

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/enel-si-elettrizza-in-borsa-con-open-fiber-grazie-a-macquarie/?utm_source=rss&utm_medium=rss&utm_campaign=enel-si-elettrizza-in-borsa-con-open-fiber-grazie-a-macquarie on Fri, 19 Jun 2020 13:40:58 +0000.