Report

Maurel & Prom : Update following the publication of the note of the takeover offer

Earlier this month, the “draft information note” and the “offer document in response” related to the takeover offer made by Pertamina on Maurel & Prom were made public. The most interesting point in our view was the threshold of success for the offer which stands at 50% of the share capital or voting rights. This was good news for CB holders since it is the minimum regulatory threshold according to AMF rules (Pertamina could have set a higher success threshold). - We calculate that, in addition to shares held by Macif (likely to be tendered in our view) c. 35.5 million shares should be tendered so that the offer is successful. This represents c. 18% of the share capital and c. 28% of the free float. We believe that this is manageable and that the 50% threshold would be reached. - Besides, after the publication of the indicative timetable of the offer, when comparing the price of the poison put on the two CBs vs that of the offer, we calculate a premium of c. 0.16% on the 2019 CB and c. 0.27-0.28% on the 2021 CB in case of exercise of the poison put. The premium is higher for the 2021 CB since it bears a higher coupon (2.75% vs 1.625% for the 2019 CB). In our view, these premia should be seen as almost “free” carry since we are pretty confident that the offer will be successful. We therefore adjust slightly our recommendations on the CBs and recommend exercising the poison put instead of tendering the bonds to the offer. - - >
Underlying
Maurel Et Prom

Provider
Oddo BHF
Oddo BHF

​Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.

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