WOOD Flash – Sistema: to monetise Segezha’s stake partially, while Segezha will acquire forestry assets for USD 515m
The deal looks value accretive to us, as the combined OIBDA of Segezha and Inter Forest Rus will be 38-45% higher than Segezha’s stand-alone OIBDA, while the EV will increase by only c.21%. On our estimates, Segezha trades at 6.7x 2021E EV/EBITDA; while, following the deal, the new range will be between 5.6-5.9x 2021E EV/EBITDA. Although we would prefer Sistema to sell Segezha’s shares without a discount to spot prices, we believe that the deal should strengthen Segezha’s competitive, operational and financial position significantly; therefore, even a smaller share of Segezha in the portfolio, following the deal, could be worth more than the larger share of Segezha prior to this deal.Sistema is a telecommunications and technology investment group based in Russia. Co. invests in, and manages a range of companies which operate in the telecommunications, oil and energy, high technology, banking and other sectors. The main focus of Co.'s activities is service-based industries. Co.'s operations are organized along four segments: Telecommunications, Technology and Industry, Consumer Assets and Oil and Energy. Through its subsidiaries, Co.'s activities include: wireless telecommunications services , IT and systems integration, cable TV, manufacturing of radiotechnical equipment, oil, gas and energy production, banking activities, trading and investing and financing activities.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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