EUR 250.00 For Business Accounts Only

Asseco Poland: Trust is good but control is better

We keep ACP as a NEUTRAL but lift our FV to PLN 63.2 (from PLN 59.9) as we have added potential synergies from close co-operation with CPS (CPS PW, BUY, PLN 28.5, FV PLN 32) as we expect the tender to end successfully. In our view, the main rationale of the deal for CPS is control of a trusted external IT provider that would predominantly focus on finishing the billing system. The protracted billing contract with Huawei and finally its cancellation was in our view the main reason why CPS approached ACP, which has the important advantage of being Huawei’s sub-contractor and likely understands the architecture of Huawei’s IT system. Neither CPS nor ACP quantified any potential business synergies. We think the price offered by CPS is attractive and we advise ACP shareholders to consider it.