GBL Better understanding the Webhelp Deal
Yesterday, Concentrix announced the acquisition of Webhelp for a total of €4.4b (or $4.8b). At GBL's end, the consideration will be paid in the form of Concentrix shares (CNXC.O), earn-out shares, and a seller note. This morning, we calculated GBL's stake of 61.5% in Webhelp will be worth €2.7b and would like to note that this figure included the net debt at Webhelp. Excluding net debt, GBL will receive a total compensation of €1.5b for its stake in Webhelp which implies a multiple on invested capital (MOIC) of 1.8x on its investment which was made during FY19. During the course of this short flash note, we will look at the operations of both companies (Concentrix and Webhelp) and the benefits of the transaction as GBL will, post transaction completion, remain a shareholder in Concentrix. After having updated our model for the transaction and share buybacks, and after applying a 25.0% discount to our target equity value (TEV) of €139.7ps, we reiterate our BUY rating and €103.0 TP.Groupe Bruxelles Lambert is a holding company. Through its subsidiaries, Co. operates through the following segments: Imerys, which consists of the Imerys group that operates in four business lines of energy solutions and specialties, filtration and performance additives, ceramic materials, and high resistance minerals; and Financial Pillar, which includes, on the one hand, under investment activities, the companies Sienna Capital, Ergon Capital Partners (ECP), ECP II, ECP III, PAI Europe III, Sagard, Sagard II and Sagard III, Kartesia and Merieux Participations I and II and, on the other hand, under consolidated operating activities, the operating subsidiaries of ECP III.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.