Report
Tancrede Fulop

Engie to Sell Glow for EUR 2.6B; Value-Neutral and Dilutive by 3%-4% on EPS; Shares Undervalued

We reiterate our fair value estimate of EUR 15.5 per share and our no-moat, stable trend ratings after Engie announced that it has signed an agreement to sell its 69.1% share in its listed Thai subsidiary Glow for EUR 2.6 billion to a Thai independent power producer. Completion is expected by year-end 2018. With this disposal, Engie exceeds by EUR 1.5 billion its EUR 15 billion asset-rotation program, which started two years ago. Cash proceeds should be reinvested in growth projects or acquisiti...
Underlying
ENGIE SA.

Engie is an industrial group, based in France, active in the fields of gas, electricity, energy services and the environment. Co. is an energy provider across the entire energy chain, in electricity and in natural gas, including: purchase, production and commercialization of natural gas and electricity; transport, distribution, management and development of major natural gas infrastructures; design and commercialization of energy services and environment-related services. Co.'s activities are conducted through five segments: Energy Europe, Energy International, Global Gas and LNG, Infrastructures, and Energy Services.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Tancrede Fulop

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