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ACCIONA: SALE OF ITS STAKE IN 8 SPANISH CONCESSIONS (ANÁLISIS BANCO SABADELL)

The company has just announced an agreement with the investment funds Meridiam and Bestinver (100% ANA) to sell its entire stake in 8 Spanish concessions (concessions for 4 hospitals, 2 toll roads, an irrigation contract and the Barcelona Faculty of Law; all of them operating, and with ANA holding both majority and minority stakes). The deal’s EV totals € 484 M (€ 357 M from the stake sales and € 127 M of associated debt; ~4% of ANA’s EV), including an initial payment of € 234 M before the end of 2020 (~4% of NFD as of 9M’20). The finalisation of each asset’s sale is subject to certain conditions precedent, with the deal expected to be completed by 1H’21, when more information is expected to be given.
We believe that this news is positive but of limited impact, as although it means that the company will virtually meet its divestments targets for 2020 (€ 500 M), this sale was expected and the impact from the transaction on valuation and net debt reduction is limited. From a valuation perspective, although the company does not provide broken down data in its accounts or in the announcement of the transaction, we estimate the impact on our T.P. at around +2.5%. On the other hand, as the € 127 M of debt deconsolidated would already be included in assets held for sale, the reduction in net debt would only represent ~-6% of net debt as of the end of 9M’20, meaning that the NFD/EBITDA ratio pro forma as of 9M’20 would stand at 4.6x (vs. 4.8x previously). Lastly, with respect to the sale to Bestinver, we believe that this stake will be sold to one of the funds managed by the latter, as, if this were not the case, the part of the sale corresponding to it would not have an impact on ANA.