3Wk·

Potential Acquisition of Edenred

$EDEN (+0.43%) is rising after a media report stated that the British private equity firm BC Partners is considering a takeover of the French coupon specialist.

@investron

11 Comments

Keineui@Keineui

3Wk

I just have to say again that the post at @investron really set things off like a rocket. I'm up 50% here and made an additional 500 € on the stock using options. Kini has definitely moved way up on my list! Thanks again!

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Kini - Dividend Strategy@investron

3Wk

@Keineui thanks for the credit, but you have to give yourself most of it. As you did your own research afterwards

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Keineui@Keineui

3Wk

In addition, it was announced yesterday that $EDEN is acquiring the Mobility House Solutions division.
https://vision-mobility.de/news/the-mobility-house-edenred-uebernimmt-flottenelektrifizierungs-geschaeft-392237.html?cmpscreencustom=

All in all, this is a very encouraging development. We’ll have to see if this isn’t already the end of the line and if we need to consider an exit before the planned acquisition. What do you think, @investron?

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jkb92@jkb92

3Wk

@Keineui Well, if the takeover happens, it won't stop at today's +15%. Apparently, it's an attractive target for private equity. Plus, we bought it at a dividend yield of about 8%. So I'm holding on to it.

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jkb92@jkb92

3Wk

Why do you want to sell before the exit? If the exit doesn't work out, then the price will just go down a bit again. But if it does work out, I expect the price to be significantly higher than the current price. We did look at the valuation back then, after all.

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Keineui@Keineui

3Wk

@jkb92 Because an "exit" like that usually means the company is leaving the stock market. And I never really trust that. Sure, the price will probably go up a bit by then, and the whole thing is still up in the air. But in general, I'm always skeptical about takeovers like that.

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jkb92@jkb92

3Wk

@Keineui What do you mean by “taking it off the stock market”? Well, of course, you either sell when an offer comes in, or the transaction is handled through your broker. I did that on $BEZ. I sold when the second offer came in so I wouldn’t have to wait forever for the money through the broker. But as you say, it might not even come to that.

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jkb92@jkb92

3Wk

Somewhere on the web, an offer of 27–28€ per share is floating around. But I have no idea if that's an estimate or the actual offer. https://de.investing.com/news/stock-market-news/ubernahmespekulation-edenredaktie-schiest-um-16--in-die-hohe-3528137

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jkb92@jkb92

3Wk

@jkb92 "Given Edenred's current stock price, Oddo BHF expects that a potential offer from a private equity fund would include a significant premium." https://de.marketscreener.com/boerse-nachrichten/oddo-bhf-considers-an-acquisition-of-edenred-a-plausible-scenario-the-stock-jumps-by-18-ce7f5cdddd80f721

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Kini - Dividend Strategy@investron

3Wk

@Keineui @jkb92 great converstation guys.

I think it makes perfect sense that private equity is targeting edenred, they saw the great oportunity we also saw.

about hold vs sell, from my point of view is a very asymmetric situation. We bought at 8% yield, around 16 euros. If the offer materializes at 27-28 euros we get almost 60-80%+ premium depending when you bought. And if the BC partners walk away, the price goes back down but we still collect the 6.5% of a proven compounder.

the real risk is if the antitrust investigations produce actual fines or structural damages.

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Kini - Dividend Strategy@investron

3Wk

That sounds great!! :)

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