M&A Activity • Apr 3, 2018
M&A Activity
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ATLANTIA S.P.A.
INFORMATION CIRCULAR CONCERNING TRANSACTIONS OF GREATER SIGNIFICANCE WITH RELATED PARTIES
(Drawn up pursuant to art. 5 of the Regulation adopted by Consob by resolution no. 17221 of 12 March 2010, as amended)
REGARDING THE PURCHASE OF THE SHAREHOLDING OF ABERTIS INFRAESTRUCTURAS S.A.
IN CELLNEX TELECOM S.A.
This Information Circular is available to the public at the corporate seat in Rome, at Via Antonio Nibby no. 20 and on the internet website (www.atlantia.it) of Atlantia S.p.A. as well as on the authorised storage mechanism ().
Date of publication - 30 March 2018
| 1 | NOTICES 6 |
|---|---|
| 1.1 | RISKS ASSOCIATED TO POTENTIAL CONFLICTS OF INTEREST DERIVING FROM RELATED-PARTY TRANSACTIONS 6 |
| 2 | INFORMATION CONCERNING THE TRANSACTION8 |
| 2.1 | DESCRIPTION OF THE CHARACTERISTICS, PROCEDURES, TERMS AND CONDITIONS OF THE TRANSACTION 8 |
| 2.2 | INDICATION OF THE RELATED PARTIES WITH WHICH THE TRANSACTION IS BROUGHT ABOUT, THE NATURE OF THE CORRELATION AND THE NATURE AND ENTITY OF THE INTERESTS OF SUCH PARTIES IN THE TRANSACTION 10 |
| 2.3 | INDICATION OF THE ECONOMIC MOTIVATIONS AND CONVENIENCE OF THE TRANSACTION FOR ATLANTIA 10 |
| 2.4 | METHOD FOR DEFINING THE CONSIDERATION AND APPRAISAL REGARDING ITS FAIRNESS 11 |
| 2.5 | ECONOMIC, EQUITY-RELATED AND FINANCIAL EFFECTS OF THE TRANSACTION, PROVIDING THE APPLICABLE SIGNIFICANCE INDICATORS 19 |
| 2.6 | IMPACT OF THE TRANSACTION ON THE PAYMENTS TO THE MEMBERS OF THE GOVERNING BODIES OF ATLANTIA AND/OR COMPANIES CONTROLLED BY THE LATTER 21 |
| 2.7 | MEMBERS OF THE GOVERNING AND CONTROL BODIES, WHERE APPLICABLE, GENERAL MANAGERS AND MANAGERS OF ATLANTIA INVOLVED IN THE TRANSACTION 21 |
| 2.8 | DESCRIPTION OF THE TRANSACTION APPROVAL PROCEDURE 21 |
| 2.9 | IF THE SIGNIFICANCE OF THE TRANSACTION DERIVES FROM THE ACCUMULATION, PURSUANT TO ARTICLE 5, PARAGRAPH 2, OF OPC REGULATION OF SEVERAL TRANSACTIONS COMPLETED DURING THE FINANCIAL YEAR WITH THE SAME RELATED PARTY, OR WITH |
| SUBJECTS RELATED BOTH TO THE LATTER AND TO THE COMPANY, THE INFORMATION INDICATED IN THE PREVIOUS POINTS MUST BE PROVIDED WITH REFERENCE TO ALL THE AFORESAID OPERATIONS 23 |
|
A list of the main definitions and terms used in this Information Circular is shown below. Such definitions and terms have the meaning given below unless specified otherwise. The terms defined in the singular tense also refer to the plural tense and vice versa, where the context so requires.
| Atlantia | Atlantia S.p.A., having its registered office in Rome, at Via Antonio Nibby no. 20. |
|---|---|
| The Committee's Financial Advisors |
Leonardo (as defined herein) and Studio Gualtieri (as defined herein), jointly. |
| Atlantia Committee of Independents or Committee |
The Committee of Independent Directors for Transactions with Atlantia's Related Parties, formed of (i) Mr. Giuliano Mari (Chairman), (ii) Mr. Bernardo Bertoldi and (iii) Ms. Lynda Christine Tyler-Cagni. |
| Information Circular | This information circular, which concerns transactions of greater significance with related parties, drawn up pursuant to art. 5 of the OPC Regulation and art. 4.2(i) of the OPC Procedure. |
| Edizione | Edizione S.r.l., having its legal office in Treviso, Piazza del Duomo no. 19. |
| Leonardo | Leonardo and Co. S.p.A. |
| Transaction | As defined in the preamble. |
| OPC Procedure | The Atlantia "Procedure for related party transactions" in force. |
| Issuers' Regulation | The regulations adopted by Consob with resolution no. 11971 of 14 May 1999, as amended. |
| OPC Regulation | The regulations adopted by Consob with resolution no. 17221 of 12 March 2010, as amended. |
| Studio Gualtieri | Studio Gualtieri e Associati |
| TUF [Consolidated Finance Act] |
Legislative Decree 24 February 1998, no. 58. |
On 13 March 2018, Atlantia subscribed an agreement (the "Agreement") with Actividades de Construcción y Servicios S.A. ("ACS") and Hochtief AG ("Hochtief") having as subject matter a joint investment, to be performed by means of a public purchase offer on Abertis S.A. ("Abertis" and, as a whole, the "Abertis Acquisition").
In relation to such Agreement, there was a provision for Atlantia to exercise – personally or by designating a third party - a call option (the "Call Option") by 23 March 2018, having as subject matter the acquisition of a portion equal to 29.9% (or 34%) of Cellnex Telecom S.A. ("Cellnex") - held by Abertis - at a price equal to the average of the stock exchange prices in the six months prior to the settlement of the Abertis Acquisition and in any case no lower than 21.20 Euros per share and no higher than 21.50 Euros per share (cum dividend) (the "Option Call Price"). The Agreement provided for the undertaking by Atlantia to adjust such price in favour of Abertis - should a tender offer be launched over 100% Abertis share capital or sale to a third party of all or part of the shareholding in Cellnex itself - of the difference, if positive, of the amount paid or received in the framework of such transaction and according to a certain earn-out adjustment mechanism.
Following the subscription of the Agreement, Atlantia initiated, through Mediobanca - Banca di Credito Finanziario S.p.A. ("Mediobanca"), a process aimed at evaluating the interest of investors identified by Mediobanca, to purchase all or part of the, Cellnex shares subject matter of the Call Option, in order to assess the possible exercise of the Call Option.
By letter dated 20 March 2018, supplemented thereafter on 23 March 2018 (the "Letter"), Edizione notified its availability to grant Atlantia a put option (the "Put Option") which could be exercised by 16 April 2018, having as subject matter, amongst others, the purchase of a portion equal to 29.9% of Cellnex at a unit price per share of 21.50 Euros, equal to the maximum of the range of values pursuant to the Call Option Price (the "Consideration" and, comprehensively, the entire negotiatory issue between Atlantia and Edizione indicated above, the "Transaction").
The subject matter of this information circular (the "Information Circular") is the Transaction.
The Transaction, in fact, is established as a "transaction of greater significance" (pursuant to art. 1.1, letter a) of Attachment 3 to the OPC Regulation and art. 2.1 of the OPC Procedure) since it exceeds the value significance ratio. For this reason, before the Transaction is approved by the Board of Directors, the Atlantia Independents Committee issued a grounded opinion (enclosed sub Attachment 1 to this Information Circular) regarding Atlantia's interest in fulfilling the Transaction as well as the convenience and substantial correctness of the related conditions (the "Committee's Opinion").
For the purposes of expressing the Committee's Opinion and in exercising the faculties provided under the OPC Procedure, the Atlantia Independents Committee identified, in Leonardo & Co. S.p.A. ("Leonardo") and Studio Gualtieri e Associati ("Studio Gualtieri" and, together with Leonardo, the "Committee's Financial Advisor")) as the independent experts to which to confer the assignment of issuing a due fairness opinion, having as subject matter the appraisal of the economic conditions of the Transaction and the fairness of the Consideration (enclosed sub Attachment 2 to this Information Circular).
On 23 March 2018, the Board of Directors of Atlantia resolved to exercise the Call Option and, in the same context, to accept the Letter from Edizione in the terms described in this Information Circular.
This Information Circular was drawn up by Atlantia pursuant to and by effect of art. 5 of the OPC Regulation, as well as art. 4.2(i) of the OPC Procedure.
The Transaction pursuant to this Information Circular constitutes a transaction between related parties pursuant to the OPC Procedure by virtue of the participatory relations existing between the companies participating in the Transaction.
In particular, by means of Sintonia S.p.A., Edizione has a 30.25% shareholding in Atlantia's share capital. Such participatory relationship denotes the existence of a correlation between Atlantia (on the one side) and Edizione (on the other).
Pursuant to art. 2.1 of the OPC Procedure, "Related Party" means, indeed, a subject which: "a) directly or indirectly, also through Subsidiary Companies...trusts or interposed persons: i) Controls the Company, is Controlled by it, or is subject to common Control; ii) has a shareholding in the Company such as to be able to exercise Significant Influence over the latter; iii) exercises Joint Control over the Company; b) is an Associated Company […] of the Company; c) is a Joint Venture […] in which the Company is a venturer; d) is one of the Directors having Strategic Responsibility for the Company or its parent company; e) is a Close Relative […] of one of the subject pursuant to letters a) or d) hereabove; f) is an entity in which one of the subjects pursuant to letters (d) or (e) exercises Control, Joint Control or Significant Influence, directly or indirectly, a significant portion, in any case no less than 20%, of voting rights; g) is a supplementary pension fund, collective or individual, Italian or foreign, established in favour of the Company's employees or of any other entity related thereto".
Consequently, pursuant to the OPC Procedure, the Transaction is established as a related-party transaction.
The Transaction is also (a related-party transaction) "of greater significance", given that the Consideration exceeds the 5% threshold provided under the OPC Procedure as regards the socalled value significance ratio, this meaning, pursuant to art. 2.1 of the OPC Procedure, the ratio between the countervalue of the Transaction and the Company's capitalization at the end June 30, 2017, latest market trading day included in the half-year Report (last available financial report published as of the date of the Transaction authorisation)1.
In conformity with the rules and supervisory processes provided under the OPC Procedure: (i) the Atlantia Independents Committee, exclusively formed of non-executive, independent directors, was involved in the negotiating phase and preliminary investigative phase of the Transaction through receiving a complete and timely informatory flow and documents regarding the Transaction; (ii) the Committee was able to ask for clarifications and formulated observations to the management assigned with conducting the negotiations; (iii) the Committee met three times (lastly on 23 March 2018) to examine the documents and the various profiles related to such Transaction; (iv) the Atlantia Independents Committee appointed two
1 Such 5% threshold, calculated according to the Company's capitalization as of 30 June 2017, is equal to about 1,017 million Euros (in other words an amount lower than the consideration of the Transaction). For the sake of completeness, following the date in which the Transaction has been authorized, the Company has published the 2017 Annual Report and, therefore, under the following paragraph 2.5, the ratios will be calculated as of such latter date.
independent experts, identified as Leonardo and Studio Gualtieri respectively, to draw up a due Fairness Opinion; (v) the Committee gave the Committee's Opinion in the meeting of 23 March 2018; (vi) the Board of Directors of Atlantia approved the Transaction in the meeting of 23 March 2018, on the basis of the preliminary documentation received and the grounded favourable opinion of the Committee, considering the interest in fulfilling such Transaction as well as the convenience and substantial correctness of the related conditions.
The main elements of the Transaction, as contained in the Letter, are:
takeover bid on 100% of the Cellnex share capital at a price exceeding the Consideration, Edizione shall pay Abertis an additional sum to the Consideration in relation to the Shareholding for the amount equal to the difference, where positive, between the price per share of the takeover bid and the Consideration (increased pro rata temporis by an IRR equal to 8% on an annual basis and adjusted to account for any payment of dividends or other factors of adjustment of common application in financial practice); and (b) if, in the 12 months after execution of the sale and purchase of the Shareholding, Edizione sells all or part of the Shareholding to third parties at a price exceeding the Consideration, Edizione shall pay Abertis an additional sum to the Consideration for the amount equal to the difference, where positive, between the price per share of the takeover and the Consideration (increased pro rata temporis by an IRR equal to 8% on an annual basis and adjusted to account for any payment of dividends or other factors of adjustment of common application in financial practice) for the corresponding number of shares sold by Edizione to the third party (so-called earn-out clauses, also called anti embarrassment, symmetrical to the content of the same commitments assumed by Atlantia to the benefit of Abertis in relation to the Agreement).
The Letter also bears the following additional terms and conditions:
i) In the case that Edizione completes the purchase/sale of the Shareholding, the latter shall grant Atlantia: (a) the right (personal and non-transferrable) to jointly invest in Cellnex, acquiring (from Edizione) up to 20% of the Shareholding (equal to approximately 6% of Cellnex share capital) or, as it will be agreed between the parties, 20% of the vehicle which shall hold the Shareholding (the "Vehicle Company"), within the second year after completion of the aforesaid purchase/sale, at a price per Cellnex share equal to the greater between (i) the fair market value of the Cellnex share at the time and (ii) a price allowing Edizione to realise, upon transfer to Atlantia, an IRR equal to 10% on the unitary purchase price paid by Edizione; without prejudice to the fact that, in the case of joint-investment, Atlantia shall be subject to a three-year lock-up period and Atlantia shall be guaranteed governance rights proportionate to the entity of the investment; (b) a "first offer right" and a "pre-emption right", pursuant to which - after a first period of 12 months from the date of execution of the purchase/sale of the Shareholding, during which Edizione may identify the jointinvestors for the minority shareholdings of the Shareholding or the Vehicle Company - – Edizione or the Vehicle Company intend to sell, wholly or partially, the Shareholding (or, as regards Edizione, the stakes in the Vehicle Company) within seven years after execution of the purchase/sale, Atlantia may submit a first binding purchase offer on the Shareholding, the stakes in the Vehicle Company or, in the case in which such Vehicle Company transfers the Shareholding, a fraction of the Shareholding subject matter of transfer proportionate to Edizione's equity investment in the share capital of the Vehicle Company (the "Stake for Sale"), after which: (i) in the case that Edizione or the Vehicle Company receive a binding offer from a third party buyer for the Stake for Sale at a price not exceeding at least 3% respect to that offered by Atlantia, or do not receive any binding offers for the Stake for Sale, in the 6 months thereafter Edizione or the Vehicle Company may sell the Stake for Sale exclusively to Atlantia, at the price offered by Atlantia in its first bid; and (ii) if Edizione or the Vehicle Company receive an offer from a third party buyer for the Stake for Sale at a price exceeding 3% respect to that offered by Atlantia, Edizione shall promptly notify Atlantia thereof and the latter shall have the right to purchase the Stake for Sale at a price at least equal to that offered by the third party buyer, notifying Edizione and, as the case may be, the Vehicle Company thereof;
Edizione holds, by means of Sintonia S.p.A., 30.25% of the share capital of Atlantia and is a majority shareholder thereof. Pursuant to art. 2.1 of the OPC Procedure (mentioned above), Edizione must therefore consider itself a "Related Party" of Atlantia.
The Transaction falls within the scope of application of the OPC Procedure and, in particular, the regulation provided for transactions of greater significance, given that the Consideration exceeds the threshold of 5% related to the so-called value significance ratio (please refer to paragraphs 1.1 and 2.5).
Atlantia's interest in fulfilling the Transaction is deemed as existent since the latter facilitates a good outcome of the Abertis Acquisition.
In particular, the Transaction allows giving certainty to the sale of the Shareholding, concerning both time and value. Reminder is given, moreover, that since the announcement of the takeover on Abertis, Hochtief had notified its intention to sell the shareholding of Abertis in Cellnex; Atlantia had declared, in turn, in the Explanatory Leaflet published in relation to the takeover on Abertis announced in May 2017, that it did not wish to raise a takeover on Cellnex and that it would have evaluated the sale of its shareholding at an appropriate time.
Moreover, the Transaction allows an improvement to the financial structure of the Albertis Acquisition and offers the possibility to benefit from strategic optionality in the medium term. Atlantia may, in fact, evaluate, during a two years period, where respondent to an own interest, a joint investment with Edizione in the share capital of Cellnex under the conditions stated hereabove. In addition, as stated above, a right of first offer and a right to match have been granted in favour of Atlantia (for a seven years period) concerning the Shareholding in Cellnex.
Lastly, it cannot be overlooked that the proposal by Edizione allows Atlantia to have a certain period of time at its disposal (until 16 April 2018, therefore a significant larger timing compared to 23 March 2018 set forth under the Agreement for the Call Option exercise) to verify, through its advisor Mediobanca, the existence of any alternative buyers at better conditions.
As regards the convenience and correctness of the Transaction and the related conditions, the Board of Directors of Atlantia, according to the preliminary investigative documents received and the grounded favourable opinion of the Committee, has considered the Company's interest in fulfilling the Transaction as well as the convenience and substantial correctness of the related conditions. The Board of Directors also availed of the fairness opinion of Equita SIM S.p.A. ("Equita") regarding the fairness, from a financial point of view of the price for exercising the Call Option to acquire 29.9% of the share capital of Cellnex.
The Consideration for the Transaction, after negotiations between the parties, has been determined in an amount equal to the maximum value provided in the Agreement for Atlantia to exercise the Call Option..
As mentioned, Equita SIM, in its capacity as financial advisor, issued a fairness opinion to Atlantia's Board of Directors on 23 March 2018 regarding the fairness, from the financial point of view, of the Option Call exercise price for acquiring 29.9% of the share capital of Cellnex. The content of Equita's Opinion is hereby summarized although it does not directly concern the Transaction subject matter of this Information Circular.
For the purposes of drawing up its fairness opinion, Equita referred exclusively to publicly available data and information concerning Cellnex. In particular, Equita did not carry out any activity of due diligence (financial, legal, commercial, fiscal, industrial and environmental) on Cellnex, nor did it have access to Cellnex' management and business plan. Therefore, for the purposes of its evaluatory analysis, Equita exclusive used so-called market methods, to be specific i) the Stock Exchange quotations method, ii) the method of objective valuations indicated by the research analysts who follow the Cellnex security and iii) the method of Stock Exchange multiples of listed companies comparable to Cellnex.
When applying the aforesaid evaluation methods, the characteristics and implicit limits of each one of them were taken into consideration according to professional assessment practice normally followed in the sector.
The appraisals were conducted in a so-called stand alone context, namely under hypothesis of operational autonomy of Cellnex and in particular disregarding any impact on its assessment of exercising the Call Option, or the impact of any synergies and extraordinary costs deriving from the exercise of the Call Option. The analysis was conducted considering Cellnex in the hypothesis of going concern and operational autonomy, without substantial changes in management.
The analysis and appraisals contained in the fairness opinion of Equita are based on and refer to the market and economic conditions existing on the date of the latter, as well as the data and information of public domain concerning Cellnex up to 23 March 2018. In particular, Equita pointed out that the Option Call prices shall be punctually determined on the date of regulating the voluntary public offer of purchase launched by Hochtief on Abertis and, therefore, on a later date than that of its fairness opinion. The evaluation analyses and conclusions were therefore drawn up and are to be understood as valid as at 23 March 2018.
Based on the considerations shown above and given the limits and restrictions of the considered analysis, Equita deems that, as of 23 March 2018, the price for exercising the Call Option is consistent from the financial viewpoint, since as included in the range of values resulting from the application of the methods of assessment used.
* * * *
The Atlantia Independents Committee also availed, where performing its functions and according to the provisions under the OPC Procedure, of the analysis carried out by the independent advisors, Studio Gualtieri and Leonardo.
The Committee's Financial Advisors were identified and selected by such Committee. In particular, the assignment conferred to Studio Gualtieri provided for the supply of assistance and advisory services concerning the Transaction and, in particular, the issue of an opinion for the Committee regarding fairness, from the financial viewpoint, for Atlantia, of the terms and economic conditions of the Letter. The same assistance task was conferred to Leonardo which was requested, in particular, to draw up an opinion to the benefit of the Committee regarding the fairness of the Consideration.
In relation thereto, we report that the verification of effective independence of Studio Gualtieri and Leonardo was completed by acquiring specific declarations of independence from said advisors. In particular, they were asked to specify any activities and/or assignments in progress on behalf of the Gruppo Atlantia group and the Gruppo Edizione group, as well as carried out on behalf of such Groups in the last 12 months, where applicable. In addition, they were asked to notify the existence of any personal, professional and economic relations (existing or undertaken in the last twelve months) with the companies of Gruppo Atlantia, the companies of Gruppo Edizione, the respective directors as well as the main shareholders of Atlantia (meaning as main shareholders those resulting from the communications published as per art. 120 of the TUF on the Consob website), in order to assess whether conflicts of interest could arise from the latter.
Studio Gualtieri and Leonardo issued declarations regarding the existence of said reports and/or relations regarding the aforementioned subjects and such declarations were verified by the competent internal structures of the Company2.
Shown below is a summary of the analyses and appraisals conducted by Studio Gualtieri for the purposes of drawing up its own opinion (the "Gualtieri Opinion"), referring to the documents attached to the Information Circular for a more thorough and analytical description of the conducted process.
The task was performed by Studio Gualtieri on the basis of information made available, fully relying on the truthfulness, accuracy and completeness thereof and without performing any analysis or autonomous and independent verification.
The subject matter of the assignment was to assess the Transaction exclusively in terms of substantial correctness of the economic conditions, as the performance of analyses and indepth examinations on the convenience of the Transaction and Atlantia's interest in fulfilling it do not pertain in any way to the examination conducted by Studio Gualtieri to formulate the Gualtieri Opinion and were not therefore conducted.
Verification of the Consideration's response to market conditions was performed by Studio Gualtieri according to the following evaluation analyses:
Based on the aforesaid analyses, Studio Gualtieri concluded that the Consideration, reflecting the informatory framework and being in line with the values expressed by the share markets for the typology of company in which Cellnex falls, is substantially correct from Atlantia's viewpoint.
2 Leonardo declared, by way of completeness, that it had completed a financial advisory task in favour of Abertis in the last 12 months, however the company does not belong to Gruppo Atlantia or Gruppo Edizione (subject matter of examination in the case at issue).
The evaluation process of the economic conditions of the Transaction carried out in the Gualtieri Opinion was then extended to two further profiles:
With reference to the profile pursuant to letter a), Studio Gualtieri, on the basis of examining the clauses governing the Transaction, concluded that the Put Option, albeit not producing any differential economic advantage for Atlantia per se, respect to the failed realisation of the Transaction, allows it to retain the possibility, until 16 April, to obtain a partial and indirect economic benefit from a third party offer against a modest cost opportunity.
With reference to the profile pursuant to letter b), Studio Gualtieri highlighted that the faculty is an option with an exercise price equal to the market price at the time of exercise, so that its economic value, as Cellnex is a listed company, is substantially null given that in abstract that shareholding could be bought on the market. Nonetheless, rights of governance and rights of first offer and pre-emption are associated to it which, albeit being an enrichment of the shareholding, do not have a measurable value.
Studio Gualtieri observed, lastly, that in the context of the convenience of the Transaction for Atlantia – therefore an aspect not pertaining to the economic conditions of the offer - certainly of some importance is the circumstance that Cellnex has a significant financial debt which, albeit not consolidated line by line in the financial statements of Abertis, evidently belongs pro quota to the group which shall refer to Atlantia and therefore the Transaction allows Atlantia's financial structure to be improved by effect of collecting the price and transfer of the aforesaid debt.
Shown below, is a summary of the evaluation analyses conducted by Leonardo in relation to the preparation of the own opinion (the "Leonardo Opinion"). We specify that such summary does not represent a description of the entire evaluation procedure carried out, which, regarding its complexity, considers many factors, analyses and considerations. The full text of the Leonardo Opinion is in any case available and attached to this Information Circular.
When applying the various evaluation methodologies, Leonardo considered, as explained in further detail in the Leonardo Opinion, the specific characteristics of Cellnex, the fact that its shares are traded on the stock exchange and the fact that the Leonardo Opinion was exclusively based on publicly available information, thereby identifying certain limitations and caveats during the evaluation process.
For the purposes of drawing up the Leonardo Opinion, Leonardo adopted methodologies in line with national and international practice, to be interpreted as inseparable and complementary arts of such evaluation process. Therefore the evaluation methods used were not divided into "main" and "secondary" or "controlling" elements; instead various levels and significance were assigned to the latter without prejudice to the consideration of all the methods.
It is specified, moreover, that the appraisals at the basis of the Leonardo Opinion were conducted in a stand-alone perspective, considering the presumption of Cellnex as an ongoing concern as valid.
Having considered the characteristics of Cellnex, the documentation available, type of activities performed and regulatory and market contexts in which Cellnex operates, as well as the respective dimensions and characteristics of the Transaction, Leonardo has used, for the purposes of elaborating the Leonardo Opinion, the following methodologies:
On the other hand, not deemed as significant, and therefore not used for the reasons given below, were the methods (i) for observing the objective prices published by the research analysts, (ii) multiples of comparable transactions and (iii) takeover awards.
For the purposes of assessing the fairness of the Consideration, Leonardo pointed out that the various evaluation methodologies are characterised by different levels of significance, when applied to the case at issue, as discussed hereunder.
A. Method for analysing the average stock exchange prices over various timeframes.
Two dates of reference were considered for the purposes of applying the methodology: (i) the date of announcement of the Agreement between Atlantia, ACS and Hochtief related to the Abertis Acquisition, i.e. 13 March 2018 ("Joint Offer Announcement Date") and (ii) the date the first takeover was raised by Atlantia in 2017, i.e. 15 May 2017 ("Announcement Date of the Atlantia Offer").
The volume of trade on Cellnex share on the stock exchange proves to be consistent (with about 1 million shares traded daily in the last 12 months and a 100% rotation of the floating value in about 5 months), making the Cellnex security very liquid. In addition, we found that the Cellnex shareholding structure is predominantly constituted by floating shares.
In light of such considerations, this method was attributed a medium-high level of significance.
The DCF method was applied on publicly available information: therefore current or forecast economic-financial data were not provided, nor an industrial plan prepared by Cellnex management. Expected future cash flows were drawn up according to estimates and projections contained in market research published by the analysts.
In particular, the method was applied to the forecast estimates until 2022 regarding operating cash flows drawn up by the financial analysts. So as to calculate the consensus of the financial analysts, market research was considered, published after the issue of the annual results 2017 by Cellnex (16 February 2018): (i) Kepler Cheuvreux (15 March 2018), RBC Capital Markets (6 March 2018), Barclays (2 March 2018), Morgan Stanley (1 March 2018) and Deutsche Bank (20 February 2018).
The lack of availability of an industrial plan prepared by the management limits the significance of the methodology.
In light of such considerations such method was attributed medium significance.
The identified sample of comparable companies is significant both in terms of dimensions and business. The Enterprise Value on Ebitda ("EV/Ebitda") multiple is the most appropriate and mostly used indicator to assess companies operating in the sector of reference.
The chosen sample was identified among listed companies operating on the radio network stations market (so-called "Towers"), separately considering those operating on the telecommunications/mobile networks and those operating in the television/broadcasting networks, in order to consider the relative contribution of the two sectors to the comprehensive revenues of Cellnex.
Considering the differences associated (i) to the different contribution of the two identified sectors to the comprehensive turnover, (ii) to the relative dimension respect to Cellnex, and (iii) to the geographic presence of the single companies in the sample; such method was assigned a medium level of significance.
Cellnex is followed by an ample panel of market analysts which have released an objective price and recommendation following publication of the annual results 2017 by the Company (i.e. 16 February 2018).
The method mainly used by the market analysts was found to be the DCF method. Nonetheless most of the examined research refers to a trend and forecast evaluation of the Cellnex shares, along a timeframe of 12/24 months, at the end of which the analysts expect the completion of the current cycle of strong development of Cellnex organically (with huge direct investments) and externally (through acquisitions) and that the current strongly evolving dynamic regarding operational cash flows stabilises. The Leonardo Opinion refers, necessarily, to the estimated fair value to date.
In light of such consideration, this method was not applied.
The transactions which took place within the sector of reference mainly concerned assets (i.e. asset deals), thereby limiting comparability with the Transaction in question.
In light of such consideration, this method was not applied.
Considering the characterising elements of the proposed Transaction, the application of the takeover awards method was not considered relevant and therefore was not applied.
The table below shows the values per Cellnex share resulting from the application of all the methods of assessment used for the purposes of the analysis (illustrated in paragraph 2.4(i) hereabove) and the related levels of significance. The methods not applied were therefore not taken into consideration.
| Cellnex | |||||
|---|---|---|---|---|---|
| Value per share (Euro) - Min |
Value per share (Euro) - Max |
Significance Level of the Method |
|||
| Analysis of the average stock exchange prices over various timeframes - Announcement Date of Joint Offer) |
16.01 | 21.44 | Medium-high | ||
| Analysis of the average stock exchange prices over various timeframes – Announcement Date of Atlantia Offer) |
14.39 | 16.08 | Medium-high | ||
| DCF | 16.73 | 20.36 | Medium |
| Market multiples | 19.84 | 20.84 | Medium |
|---|---|---|---|
| ------------------ | ------- | ------- | -------- |
(iv) Indication of the criteria with which the final value of the consideration was established
Considering the results set out in the previous point (iii), regarding the different levels of significance of the evaluation methods examined and in conformity with the mandate received from Atlantia, Leonardo deemed that, as at 23 March 2018, limitedly to the Transaction as identified and conditionally to the definition in its opinion, the proposed consideration of 21.5 Euros per share is consistent from the financial viewpoint.
For the purposes of defining relevant data subject matter of processing, the documentation and information provided by Atlantia were used, together with other publicly available information. In particular:
The analysis was carried out taking average weighted quotations on different timeframes as reference, measured until the two dates of reference, i.e. Announcement Date Joint Takeover and Announcement Date Atlantia Offer. The two dates of reference allow Cellnex to be assessed according to a price per share defined as undisturbed.
The evaluation range was identified on the basis of a WACC equal to 6. 06% and 6.46% and the growth rate of cash flows in perpetuity according to the Gordon formula equal to 1.95% and 2.05%.
Starting from the Enterprise Value, we were able to calculate the value pertaining to the company shareholders and consequently the value per share, applying the typical adjustments of this type of analysis and considering, amongst others: the net financial debt, of the funds, the value of minority shareholdings as per the financial statements and the value of non-consolidated companies as from financial statements assessed using the equity method.
The analysis was performed by taking the averages for 2018 and 2019 of the market multiples of comparable companies as reference, considering the three-month average of market capitalisation.
For the purposes of applying the EV/Ebitda multiple, Cellnex' Ebitda was adjusted for non recurrent entries, in accordance with the amendments publicly brought by Cellnex itself.
The EV/Ebitda multiple was applied by weighting the average EV/Ebitda multiple for the two panels of comparable companies (i.e. telecom and broadcasting) by the weight of the two sectors on Cellnex revenues.
Starting from the Enterprise Value, we were able to calculate the value pertaining to the company shareholders and consequently the value per share, applying the typical adjustments of this type of analysis and considering, amongst others: the net financial debt, of the funds, the value of minority shareholdings as per the financial statements and the value of non consolidated companies as from financial statements, assessed using the equity method.
As indicated in paragraph 2.1, the Transaction consists in a Put Option granted by Edizione to Atlantia on the portion equal to 29.9% of the share capital of Cellnex held by Abertis, stake that Atlantia has the right to acquire according to the provisions set in the Agreement.
The economic, financial effects and the impacts on assets and liabilities of the Transaction in the consolidated financial statements of Atlantia group are different in the hypothesis that Atlantia has not already acquired control and therefore does not fully consolidate Abertis and its related subsidiary companies on the date of executing the Transaction and in the case that the Transaction is competed after the acquisition of said control.
In particular, in the case in which the sale of the 29.9% stake in Cellnex held by Abertis to Edizione is performed prior to the foreseen acquisition of the control of Abertis by Atlantia, according to IFRS international accounting standards, no economic, financial and balance sheet effects from the Transaction would be reported in the consolidated financial statements as the sale would occur before the consolidation of Abertis and its subsidiaries by Atlantia; in fact, only after the acquisition of control over Abertis, Atlantia group would report among the asset acquired an higher cash (or, a lower consolidated financial debt) deriving from the yet performed transfer of the shares to Edizione for a consideration of 1,489 million Euros.
On the other hand, if the sale of the 29.9% stake of Cellnex is carried out after the foreseen acquisition of Abertis by Atlantia, according to IFRS, the sale of the mentioned stake would generate profit from discontinued operations of approximately 18 million Euros (equal to the difference between the fair value of the investment in Cellnex, resulting from the closing price of the stock market of the Cellnex share on 23 March 2018, corresponding to 1,471 million euros, and the total consideration of 1,489 million Euros paid by Edizione to Abertis), with a profit attributable to the Group of around 9 million Euros.
From a financial and balance sheet point, there would be an increase in cash and cash equivalents of 1,489 million Euros (or an equal reduction in the consolidated financial debt) against the derecognition of the investment (the value of which, as mentioned, is equal to 1,471 million Euros).
We point out that today the fair value of Cellnex at the date of closing of the acquisition of Abertis by Atlantia cannot be determined, the forecasted economic and balance sheet effects in such case may be susceptible to variations.
For the purposes of verifying that the thresholds of greater significance have been exceeded pursuant to the OPC Procedure, reference was made to the indicators provided under Attachment 3 of the OPC Regulation, and in particular to the value significance ratio and the asset significance ratio, as represented in the table shown below, on the basis of the 2017 financial figures published after the authorization on the Transaction.
| Index | Description | Numerator | Denominator | Index | Relevance |
|---|---|---|---|---|---|
| (€ million) | (€ million) | value | threshold | ||
| (%) | |||||
| Index of |
Relation between the |
1489 | Higher between |
6.85 | 5.00 |
| relevance of | value of the Transaction | 11763 and 21735 | |||
| the counter |
and the higher between | ||||
| value | the Equity reported in | ||||
| the 2017 consolidated |
|||||
| balance sheet published | |||||
| in the 2017 Annual |
|||||
| report and Atlantia |
|||||
| market cap as at |
|||||
| 29/12/2017 last day of |
| opening of the Stock Exchange as reported in the above mentioned document |
|||||
|---|---|---|---|---|---|
| Index of relevance of the asset |
Relation between the counter value for the Transaction and the total asset value reported in the 2017 consolidated balance sheet published in the 2017 Annual report |
1489 | 40057 | 3.71 | 5.00 |
We point out, lastly, that the liability significance ratio is not applicable to the Transaction represented in this Document.
The amount of the remuneration of Atlantia's Board of Directors members and/or of its controlled companies will not be impacted as a result of the Transaction.
For the sake of completeness, as clearly stated under point 2.3 of this document, the fulfilment of the Transaction facilitates the good outcome of the Abertis Acquisition, in relation to which it has been drawn up an additional incentive system (please refer to 2018 Remuneration Report).
There are not involved in the Transaction, as related parties, members of the Board of Directors, members of the Board of Auditors, general managers and managers of Atlantia, without prejudice to the indications in this Information Circular with reference to the positions covered by certain Atlantia's Board of Directors members in Edizione.
As described in the paragraphs hereabove, the Transaction falls within the scope of application of the OPC Procedure since "a related-party transaction of greater significance". Therefore the Transaction was approved in observance of the procedural process and regulation provided under art 4.2 of the OPC Procedure.
As regards the activity of the Atlantia Independents Committee, the latter was involved in the phase of negotiations and preliminary investigative phase of the Transaction by means of receiving a complete and timely informatory flow of information and documents concerning the Transaction.
The Committee immediately identified Studio Gualtieri and Leonardo as independent experts to which to assign the task of issuing opinions on the economic terms of the Transaction and Studio Legale Carbonetti e Associati for legal assistance, subject to verification of the independence and absence of conflict of interests.
The Atlantia Independents Committee also requested information deemed appropriate and formulated observations regarding the subjects assigned to the negotiations, it also assisted in the negotiations between the Corporate management and Edizione. In particular, the Committee formulated its observations in relation to certain specific aspects of the Letter. Moreover, on the outcome of the negotiations, many of the Committee's observations were upheld and reflected in the addendum (supplementary to the Letter) sent by Edizione on 23 March 2018; this allowed a comprehensive improvement in Atlantia's position.
The Information Circular received from the Committee concerned the executive procedures and conditions foreseen for realising the Transaction, the evaluation procedure followed to define the Consideration, as well as the interests and motivations underlying the Transaction. The Committee was also informed about the outcome of the selection process performed by Mediobanca related to the verification concerning the availability of certain investors to present any expressions of interest to purchase the Shareholding.
In particular, Mediobanca's work (that anyway it will proceed until 16 April 2018, date foreseen in the Letter for the Put Option exercise) was structured as follows:
Select a group of primary international and financial investors potentially interested in the Transaction;
Fathom the potential interest of the selected counterparties;
Draw up a letter of process containing the requirements, methods and timeframe for presenting an offer related to the Transaction and sent it to the interested counterparties (the "Process Letter");
Manage communications with the selected counterparties in order to receive the related offers and feedback;
Draw up a summary document to the benefit of the Board of Directors of Atlantia regarding the activity carried out, in order to support the Board in its decision as regards exercising the Purchase Option and selecting the best offer.
To be specific, Mediobanca prepared and sent the Process Letter to 12 investors. In response to the Process Letter, Mediobanca received: (i) the Letter; (ii) an expression of interest from an American institutional investor containing a price offer per share of up to 22.50 Euros (nonetheless a non binding offer and subject to confirmatory due diligence and the agreement about the final documentation); and (iii) a generic expression of interested from another American institutional investor - not formalised and in any case absent of the indication of offered price - subject in any case to due diligence.
The Committee met three times from 21 March to 23 March 2018. During the last meeting, the Committee unanimously approved the Committee's Opinion concerning the Transaction and, in particular, acceptance of the Letter from Edizione.
The Transaction was then approved by unanimity of the attendees, by the Board of Directors of Atlantia on 23 March 2018. At such time, the directors approved the Transaction by favourable vote of all the voters (equal to thirteen) and in the absence of two directors. In the same context, as mentioned, the Board of Directors of Atlantia also resolved to exercise the Call Option, which constitutes the logical-legal antecedent of the Transaction.
We point out that, upon opening the discussions of the board regarding the specific item of the agenda, those declaring to have an interest in the Transaction - pursuant to art. 2391 civil code - were the directors Fabio Cerchiai (Chairman), Marco Patuano, Carlo Bertazzo, Elisabetta De Bernardi di Valserra and Valentina Martinelli since as subjects covering different offices in Edizione as well. Such latter directors did not anticipate during the meeting the respective declaration of vote on the Transaction but only voted after the other eight director present had expressed their vote in favour on such Transaction (therefore without influencing the outcome of the resolutions which, when they voted, had already de facto been approved by the majority of attendees).
In support of its decisions, the Board of Directors of Atlantia availed of advisors of proven professionalism and experience in this type of transaction and, in particular of:
The described case is not applicable to the Transaction.
* * * *
The manager responsible for financial reporting, Giancarlo Guenzi, declares, pursuant to section 2 of article 154-bis of the Consolidated Finance Act, that the accounting information contained in this Information Circular is consistent with the underlying accounting records.
Roma, 23 marzo 2018
Ai componenti del Consiglio di Amministrazione di Atlantia S.p.A.
Egregi Signori,
facciamo riferimento alle seguenti circostanze:
spettivo" e, complessivamente, l'intera vicenda negoziale tra Atlantia ed Edizione sopra indicata !'"Operazione");
E. l'Operazione, secondo quanto indicato più dettagliatamente nel successivo paragrafo 2, si qualifica come operazione con parte correlata ai sensi del Regolamento Consob 17221120 l O (il "Regolamento OPC") e dalla Procedura per le Operazioni con Parti Correlate di Atlantia approvata dal Consiglio di Amministrazione della Società nella riunione dell'Il novembre 2010 ed aggiornata, da ultimo, in data 15 dicembre 2017 (la "Procedura") e, pertanto, il Comitato degli Amministratori Indipendenti per le Operazioni con parti correlate della Società (il "Comitato") è tenuto a redigere un "parere motivato", contenente, inter alia, le proprie valutazioni in riferimento ali' Operazione.
A tal proposito, dunque, ai sensi della Procedura, formuliamo il seguente parere (il "Parere").
La Lettera indica i seguenti elementi principali dell'Operazione:
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parte di Edizione (laddove Atlantia eserciti l'Opzione Put); o (b) la scadenza del dodicesimo mese successivo al completamento dell'Acquisizione Abertis (laddove Atlantia non eserciti l'Opzione Put);
La Lettera presenta altresì i seguenti ulteriori termini e condizioni:
(i). nel caso in cui si perfezioni la compravendita della Partecipazione da parte di Edizione, quest'ultima riconoscerà ad Atlantia: (a) il diritto (personale ed incedibile) di co-investire in Cellnex, acquistando fmo al20% della Partecipazione (corrispondente al 6% circa del capitale di Cellnex) ovvero, come sarà concordato tra le parti, del 20% del veicolo che deterrà la Partecipazione (la "Società Veicolo"), entro il secondo anno successivo al perfezionamento della suddetta compravendita, ad un prezzo per azione Cellnex pari al maggiore tra (i) l'allora fair marlcet value dell'azione Cellnex e (ii) un prezzo che consenta ad Edizione di realizzare, al momento della cessione ad Atlantia, un IRR pari al l 0% sul prezzo di acquisto unitario pagato da Edizione; fermo restando che in caso di co-investimento, Atlantia sarà soggetta ad un periodo di lock-up triennale e saranno garantiti ad Atlantia diritti di governance proporzionati all'entità dell'investimento; (b) un "diritto di prima offerta" e un "diritto di prelazione", ai sensi dei quali, qualora- decorso un primo periodo di 12 mesi dalla data di esecuzione della compravendita della Partecipazione, durante il quale Edizione potrà individuare dei co-investitori per quote di minoranza della Partecipazione o della Società Veicolo - Edizione o la Società Veicolo intendano cedere, in tutto o in parte, la Partecipazione (ovvero, quanto a Edizione, le quote della Società Veicolo) entro i sette anni successivi all'esecuzione della compravendita, Atlantia potrà presentare una prima offerta vincolante di acquisto della Partecipazione, delle quote della Società Veicolo ovvero, nel caso in cui a cedere la Partecipazione sia la stessa Società Veicolo, di una frazione della Partecipazione oggetto di cessione proporzionale alla partecipazione di Edizione nel capitale della Società Veicolo (la "Quota in Vendita"), a seguito della quale: (i) nel caso in cui Edizione o la Società Veicolo ricevano un'offerta vincolante da un compratore terzo per la Quota in Vendita ad un prezzo non superiore di almeno il 3% rispetto a quello proposto da Atlantia, ovvero non ricevano alcuna offerta vincolante per la Quota in Vendita, per i 6 mesi successivi Edizione o la Società Veicolo potranno cedere la Quota in Vendita esclusivamente ad Atlantia, al prezzo proposto da Atlantia nella prima offerta; e (ii) qualora Edizione o la Società Veicolo ricevano un'offerta vincolante da un compratore terzo per la Quota in Vendita ad un prezzo superiore di più del 3% rispetto a quello proposto da Atlantia, Edizione ne dovrà dare tempestiva comunicazione ad Atlantia, la quale avrà il diritto di acquistare la Quota in Vendita ad un prezzo almeno pari a quello offerto dal terzo acquirente, dandone comunicazione ad Edizione e, se del caso, alla Società Veicolo;
Edizione, tramite Sintonia S.p.A., detiene una partecipazione del 30,25% nel capitale sociale di Atlantia.
Tale rapporto partecipativo denota l'esistenza di una correlazione tra Atlantia (da un lato) ed Edizione (dall'altro lato).
Ai sensi dell'art. 2.1 della Procedura, per "Parte Correlata" si intende, infatti, un soggetto che: "a) direttamente, o indirettamente, anche attraverso Società Controllate (come definite di seguito), fiduciari o interposte persone: i Controlla la Società, ne è Controllato, o è sottoposto a comune Controllo; ii detiene una partecipazione nella Società tale da poter esercitare un 'Influenza Notevole su quest'ultima; iii esercita Controllo Congiunto sulla Società; b) è una Società Collegata [ ... ] della Società; c) è una Joint Venture [ ... ] in cui la Società è una partecipante; d) è uno dei Dirigenti con Responsabilità Strategiche della Società o della sua controllante; e) è uno Stretto Familiare [ ... ] di uno dei soggetti di cui alle precedenti lettere a) o d); f) è un 'entità nella quale uno dei soggetti di cui alle lettere (d) o (e) esercita il Controllo, il Controllo Congiunto o l 'Influenza Notevole o detiene, direttamente o indirettamente, una quota significativa, comunque non inferiore al 20%, dei diritti di voto; g) è un fondo pensionistico
5
complementare, collettivo o individuale, italiano o estero, costituito a favore dei dipendenti della Società, o di una qualsiasi altra entità ad essa correlata".
Ne segue che, ai sensi della Procedura, l'Operazione si configura come un'operazione con parte correlata.
L'Operazione è altresì (un'operazione con parti correlate) "di maggiore rilevanza", posto che il Corrispettivo supera la soglia del 5% prevista dalla Procedura in relazione al c.d. indice di rilevanza del controvalore, per tale intendendosi, ai sensi dell'art. 2.1 della Procedura, il rapporto tra il controvalore dell'operazione e il patrimonio netto tratto dal più recente stato patrimoniale consolidato pubblicato dalla Società ovvero, se maggiore, la capitalizzazione della Società rilevata alla chiusura dell'ultimo giorno di mercato aperto compreso nel periodo di riferimento del più recente documento contabile periodico pubblicato.
Il Comitato è stato incaricato di svolgere i compiti previsti dalla Procedura con riferimento all'Operazione in data 20 marzo 2018.
A partire da tale data, il Comitato ha tenuto tre riunioni nel corso delle quali ha, fra l'altro:
In particolare, una specifica attenzione è stata rivolta alle attività di verifica dell'indipendenza di tali advisor, che è stata accertata, con l'assistenza delle strutture interne della Società, sulla base delle specifiche dichiarazioni di indipendenza e di assenza di conflitti di interesse che detti advisor hanno reso.
L'assistenza dello Studio Gualtieri, di Leonardo e dello Studio Carbonetti è stata realizzata sia attraverso la partecipazione dell' Advisor Legale e degli Advisor Finanziari
alle riunioni del Comitato, sia attraverso la prestazione di servizi di assistenza e consulenza - ciascuno per la propria area di competenza - in relazione ad ogni attività preparatoria, strumentale ed esecutiva dell'Operazione per le quali fosse responsabile il Comitato.
Ai fini dello svolgimento di dette attività, il Comitato è stato coinvolto nella fase delle trattative e nella fase istruttoria dell'Operazione attraverso la ricezione di un flusso informativo completo e tempestivo di informazioni e documenti.
Inoltre, il Comitato ha potuto richiedere chiarimenti e formulare osservazioni al management incaricato della conduzione delle trattative.
In particolare, in primo luogo, il Comitato è stato informato dell'esito del processo di selezione effettuato da Mediobanca relativo alla verifica circa la disponibilità di taluni investitori a presentare eventuali manifestazioni di interesse per l'acquisto della Partecipazione1.
Specificamente, Mediobanca ha predisposto e inviato a 12 investitori una process letter. In risposta alla process letter, sono arrivate a Mediobanca: (i) la Lettera; (ii) una manifestazione di interesse da parte di un investitore istituzionale statunitense contenente un'offerta di prezzo per azione fino ad Euro 22,50 (manifestazione tuttavia non vincolante e soggetta a confirmatory due diligence ed all'accordo sulla documentazione finale); e (iii) una generica manifestazione di interesse da parte di un altro investitore istituzionale statunitense - non formalizzata e comunque priva dell'indicazione del prezzo offerto - soggetta in ogni caso a due diligence.
In secondo luogo, il Comitato ha formulato le proprie osservazioni al management che conduceva le trattative con Edizione in relazione a taluni aspetti specifici della Lettera. Peraltro, ali' esito delle trattative, molte delle osservazioni del Comitato sono state accolte e riflesse nell'addendum alla Lettera trasmesso da Edizione il 23 marzo 20182 • Le modifiche ed integrazioni apportate alla Lettera da parte di Edizione sono state considerate positivamente dal Comitato per le valutazioni di competenza, tenuto anche conto del fatto che, sempre in data 23 marzo 2018, Atlantia, ACS ed Hochtiefhanno concordato, nell'ambito di un'intesa integrativa delle precedenti, talune previsioni ai sensi delle quali Hochtief si è impegnata a fare quanto nella sua capacità affinché: (i) dopo il
1In particolare, il lavoro di Mediobanca si è articolato come segue: l. selezionare un gruppo di primari investitori internazionali industriali e finanziari potenzialmente interessati all'Operazione; 2. sondare il potenziale interesse delle controparti selezionate; 3. predisporre una lettera di procedura contenente i requisiti, la modalità e la tempistica per la presentazione di un'offerta relativa all'Operazione e trasmettere la stessa alle controparti interessate; 4. gestire le interlocuzioni con le controparti selezionate al fine di ricevere le relative offerte e feedback; 5. predisporre un documento di sintesi a beneficio del Consiglio di Amministrazione di Atlantia in merito all'attività svolta, al fme di supportare il Consiglio nella decisione
in merito all'esercizio dell'Opzione di Acquisto e nella selezione della migliore offerta. 2 I contenuti dell'addendum sono stati anticipati dal management di Edizione nel corso della riunione del Comitato tenutasi il 23 marzo 2018 e formalizzati subito dopo sempre nel corso della medesima riunione.
settlement dell'Acquisizione Abertis, quest'ultima proceda alla cessione del restante 4,1% del capitale sociale di Cellnex così da ridurre la complessiva partecipazione detenuta al 29,9%; (ii) Abertis sottoscriva eventuali aumenti di capitale di Cellnex nel periodo compreso tra il settlement dell'Acquisizione Abertis e la cessione della Partecipazione a condizione che, su richiesta, Atlantia fornisca la relativa provvista.
Come già riportato, il Comitato ha deciso di avvalersi degli Advisor Finanziari, a cui ha affidato la predisposizione di due fairness opinion (rispettivamente, la "Fairness Opinion Gualtieri" e la "Fairness Opinion Leonardo" nonché, congiuntamente, le "Fairness Opinion"), relative alla congruità del Corrispettivo offerto da Edizione e della correttezza dei termini e condizioni previsti nella Lettera, a supporto del presente Parere.
In particolare, la Fairness Opinion Gualtieri "contiene una valutazione [ ... ] in termini di correttezza sostanziale delle condizioni economiche" della Lettera. A tal proposito, la Fairness Opinion Gualtieri dà preliminarmente atto della circostanza che, fino alla data del rilascio del presente Parere, non sono pervenute ad Atlantia ulteriori proposte vincolanti, diverse dalla Lettera, di talché risulta preclusa l'opportunità di procedere ad una valutazione comparativa di eventuali offerte concorrenti.
Tanto premesso, la Fairness Opinion Gualtieri, una volta prospettate le possibili alternative a disposizione di Atlantia derivanti dalla struttura delle clausole contenute nella Lettera ed individuate le uniche due "economicamente razionali'' dal punto di vista di Atlantia (ossia, da un lato, il mancato esercizio dell'Opzione Cali e, dall'altro lato, il congiunto esercizio dell'Opzione Cali e dell'Opzione Put), valuta se il Corrispettivo "riflette le condizioni di mercato".
A tal riguardo, sulla base (i) dell'esame dell'andamento sul mercato del titolo Cellnex (anche rispetto all'indice di riferimento del mercato spagnolo); (ii) del confronto dei dati di bilancio e borsistici rispetto a "società comparabili''; e (iii) dell'analisi dei multipli, la Fairness Opinion Gualtieri conclude che il Corrispettivo "è sostanzialmente corretto dal punto di vista di Atlantia".
Inoltre, la Fairness Opinion Gualtieri, proseguendo nel "processo valutativo delle condizioni economiche offerte da Edizione" e misurando "l 'effetto che si produce per Atlantia in base alle modalità e alle condizioni di esercizio del[l'Opzione Put]", tenuto anche conto dell'opportunità per Atlantia "di re-investire acquisendo in trasparenza il 6% circa del capitale di Cellnex", conclude che "non v'è discussione sulla convenienza di accettare la proposta di Edizione, che è l 'unica esistente".
La Fairness Opinion Leonardo, invece, si concentra, più specificamente, sulla congruità del Corrispettivo.
A tal proposito, può in breve riferirsi che la Fairness Opinion Leonardo si è basata sull'impiego delle seguenti metodologie: (i) esame dei valori di mercato delle azioni Cellnex; (ii) discounted cash flows; e (iii) analisi dei multipli in relazione a società competitor confrontabili con Cellnex; tale Fairness Opinion Leonardo ha quindi concluso espressamente ritenendo che "the Consideration to be received by the Company in the Transaction is fair t o the Company .from a financial point of view".
Pertanto, a seguito delle elaborazioni degli Advisor Finanziari, riflesse nelle Fairness Opinion, sulla base del confronto ragionato degli esiti ottenuti dall'applicazione delle metodologie di valutazione sopra indicate, pare emergere che il Corrispettivo offerto da Edizione appare congruo e i termini e condizioni previsti nella Lettera appaiono sostanzialmente corretti nei confronti di Atlantia.
Fermo restando quanto osservato al precedente paragrafo 4 in merito alla congruità dell'Operazione, quest'ultima, secondo quanto riferito dal management della Società, realizza l'interesse di Atlantia, nella prospettiva della complessiva attuazione dell'Accordo con ACS e Hochtief ai fini dell'Acquisizione Abertis. Infatti, la cooperazione con tali soggetti ed il raggiungimento di soluzioni condivise tra tutti gli attori in campo in merito alla predetta acquisizione Abertis, consentiranno la creazione di una partnership globale tra società leader mondiali nella costruzione di infrastrutture complesse e nella gestione di concessioni. In tale contesto, l'Operazione consente di dare certezza, sia nei tempi sia nel valore, al processo di cessione della Partecipazione nel più ampio ambito dell'Accordo.
In particolare, l'attribuzione ad Atlantia dell'Opzione Cali in merito alla Partecipazione in Cellnex contemperava le diverse esigenze di business dei due player, Atlantia ed Hochtief: infatti, per un verso, agevolava per la prima le trattative con la seconda relative all'Accordo, posto che quest'ultima aveva da subito annunciato (nel contesto dell'OPA su Abertis) l'intenzione di vendere detta Partecipazione; e, dall'altro lato, consentiva alla Società di essere in grado di determinare le condizioni di vendita della Partecipazione, potendo eventualmente contemplare anche il possibile diritto di riacquisto della stessa in caso di successiva rivendita a terzi3 .
3 In relazione alle intenzioni di Atlantia sulla medesima partecipazione si ricorda che, nel Folleto Explicativo- pubblicato in relazione all'OPA su Abertis annunciata nel maggio 2017- la Società ha precisato di non voler promuovere un'OPA su CelJnex e che, al momento opportuno, avrebbe valutato la cessione di partecipazioni in Cellnex al fine di non promuovere detta OPA ("Atlantia no tiene intencion de realizar, directa o indirectamente, una oferta obligatoria de compra sobre Cellnex. En el momento correspondiente, Atlantia considerarti la enajenacion de participaciones en Cellnex que sean adecuadas a estos efectos").
Inoltre, la possibilità di dismissione della stessa al corrispettivo rilevante di circa EUR l ,5 mld, unitamente alla considerazione relativa al conseguente alleggerimento della posizione finanziaria consolidata nonché alla facoltà di eventuale reingresso, a determinate condizioni, nel capitale di Cellnex consentono di qualificare l'Opzione Call, secondo l'opinione del management, come un'opportunità di investimento per la Società.
In tale contesto, la Lettera di Edizione rappresenta un utile meccanismo di ausilio per Atlantia nel decidere se avvalersi (o meno) dell'opportunità di investimento rappresentata proprio dall'Opzione Call. Infatti, posto che il fattore tempo è fondamentale per questo tipo di valutazione, anche in considerazione della serrata cronosequenza complessiva dell'operazione, l'Opzione Put consente ad Atlantia di avere a disposizione un certo periodo di tempo (fino al 16 aprile 2018) per poter verificare l'esistenza di eventuali acquirenti alternativi, in ipotesi maggiormente remunerativi, mantenendo intatta la possibilità di disinvestire alle condizioni di cui alla Lettera, designando Edizione.
La Lettera, infatti, consente la messa in sicurezza dell'operazione posto che dà (i) certezza alla Società sulla dismissione di un rilevante asset, consentendo un miglioramento della struttura finanziaria dell'operazione complessiva e (ii) la possibilità di decidere in un secondo tempo, qualora ciò risponda ad un interesse di Atlantia, di coinvestire con Edizione nel capitale di Cellnex che ha avviato ed intende proseguire un processo di progressivo consolidamento a livello europeo.
Fermo restando quanto già osservato in merito alla convenienza per Atlantia nella conclusione dell'Operazione, il Comitato ritiene altresì sussistente il profilo della correttezza sostanziale delle condizioni di cui alla Lettera.
In primo luogo, la fissazione di un corrispettivo di EUR 21,50 per singola azione Cellnex, pari cioè al massimo dell'intervallo di valori contemplato nell'Accordo, al di là della relativa congruità, come attestata dagli Advisor Finanziari, consente altresì ad Atlantia di eliminare del tutto l'ipotetico rischio di dover far fronte ad un esborso pari all'eventuale differenziale tra il predetto importo ed il Prezzo dell'Opzione Call (in tesi maggiore) che sarà effettivamente pagato ad Abertis.
In secondo luogo, la presenza di una clausola di c.d. earn-out, simmetrica a quella prevista nell'Accordo- tale per cui, in caso di successiva rivendita a terzi della Partecipazione, Edizione si impegna a versare ad Abertis la differenza tra il Corrispettivo e l'eventuale maggior prezzo ottenuto attraverso la predetta rivendita - consente alla Società di rimanere indenne rispetto ali' omologa obbligazione sulla stessa gravante.
In terzo luogo, le clausole "accessorie" - in primis la facoltà di successivo coinvestimento - rappresentano per la Società delle opportunità di poter beneficiare di opzionalità strategiche a medio e lungo termine e, dunque, in principio, valutabili favorevolmente per Atlantia, benché debba rimanere fermo che, al momento, il Comitato può manifestare esclusivamente un giudizio qualitativo di ragionevolezza, mentre lo stesso sarà tenuto ad esprimersi nel merito, rilasciando apposito parere, al momento dell'esecuzione delle relative pattuizioni negoziati.
Inoltre, quanto al previsto impegno di Atlantia a far sì che Abertis ceda la restante partecipazione del 4, l% di Cellnex, il Comitato ha verificato l'assunzione di un obbligo da parte di Hochtief nei confronti di Atlantia di compiere quanto nella sua capacità affmché Abertis proceda a tale cessione dopo il settlement dell'Acquisizione Abertis così da ridurre la complessiva partecipazione detenuta in Cellnex al 29,9%. L'impegno assunto da Atlantia nella Lettera appare quindi sostanzialmente neutro alla luce della predetta obbligazione in capo ad Hochtief.
Infine, con riferimento agli ulteriori termini relativi ad eventuali aumenti di capitale di Cellnex, Atlantia ha ottenuto, per un verso, da ACS ed Hochitief l'impegno di quest'ultima a fare quanto nella sua capacità affinché Abertis sottoscriva tali aumenti e, per altro verso, l'impegno di Edizione ad acquistare al prezzo di emissione anche le nuove azioni sottoscritte da Abertis ed a mantenere indenne Atlantia da qualsiasi controversia relativa a tale vicenda.
Il Comitato:
alla luce di quanto precede, e per quanto di propria competenza, esprime all'unanimità il proprio parere favorevole circa la sussistenza di un interesse della Società all'accettazione della Lettera, sulla base dei termini indicati dal management, nonché sulla convenienza e sulla correttezza sostanziale dei termini e delle condizioni anzidetti.
* * * *
Restando a disposizione per ogni chiarimento in merito a quanto sopra, si porgono distinti saluti.
Per il Comitato, il Presidente del Comitato
Prof. avv. Paolo Gualtieri
Ordinario di Economia degli Intermediari Finanziari all'Università Cattolica del Sacro Cuore di Milano
Spettabile
Comitato Amministratori Indipendenti per le Operazioni con Parti Correlate di ATLANTIA s.p.a.
Milano, 22 marzo 2018
Egregi signori,
come richiesto nell'incarico conferitoci per le finalità delle previsioni di cui all'articolo 8 del regolamento della Consob recante disposizioni in materia di operazioni con parti correlate, Vi rappresentiamo la nostra opinione sulle condizioni economiche della proposta contrattuale inviata ad Atlantia da Edizione, definita "lettera di supporto e backing per Atlantia relativamente a Cellnex" e datata 20 marzo.
Nell'ambito dell'accordo con Actividades de Construcción Y Servicios S.A. (ACS) e Hochtief AG (Hochtief) per l'acquisizione di Abertis S.A. (Abertis) è stata attribuita ad Atlantia un'opzione per l'acquisto di una partecipazione del 29,9% detenuta da Abertis nel capitale di Cellnex Telecom S.A. (Cellnex) – società leader in Europa nel settore delle infrastrutture per le telecomunicazioni, con un portafoglio totale di più di 27.000 torri site principalmente in Spagna e in Italia, le cui azioni sono quotate nel mercato continuo della Borsa spagnola dal maggio 2015 – da esercitare entro il 23 marzo 2018 ad un prezzo (il Corrispettivo) pari alla media ponderata per i volumi dei 6 mesi precedenti alla data di regolamento dell'offerta pubblica di Hochtief su Abertis (Offerta Abertis) con un prezzo minimo pari a € 21,2 per azione Cellnex e un prezzo massimo pari a € 21,50 per azione Cellnex da aggiustarsi in relazione ai dividendi che fossero nel frattempo distribuiti (l'Opzione Call Cellnex).
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Atlantia ha il diritto di designare un terzo quale acquirente e potrà farlo, a quanto ci è stato riferito, anche dopo l'eventuale esercizio del diritto di acquisto e, ovviamente, prima dell'esecuzione della compravendite, sebbene questo maggior termine non risulti in maniera esplicita nelle clausole contrattuali sottoposte al nostro esame.
Qualora, nei 12 mesi successivi all'acquisto della partecipazione in Cellnex per effetto dell'esercizio dell'Opzione Call Cellnex (di seguito la Partecipazione Cellnex), Atlantia, o l'acquirente designato, lanci un'offerta pubblica sul 100% del capitale di Cellnex o ceda la Partecipazione Cellnex in tutto o in parte a terzi ad un prezzo per azione più elevato del Corrispettivo, dovrà corrispondere ad Abertis la differenza di prezzo (con aggiustamento per i dividendi e per il tempo intercorso ad un tasso dell'8%) commisurata alla Partecipazione Cellnex o, in caso di cessione parziale a terzi, commisurata al numero di azioni Cellnex cedute (Earn-out).
Edizione ha proposto ad Atlantia, in caso quest'ultima eserciti l'Opzione Call Cellnex, di concederle il diritto di vendere la Partecipazione Cellnex (il Diritto di put)1 , da esercitarsi entro il 16 aprile 2018. L'esercizio del Diritto di put dovrà avvenire mediante la designazione di Edizione (o di una società veicolo da essa direttamente o indirettamente controllata) quale acquirente della Partecipazione Cellnex alle stesse condizioni e con gli stessi impegni previsti per l'Opzone Call Cellnex, ivi compreso il Corrispettivo.
Atlantia dovrà comunicare a Edizione entro il 4 aprile 2018 se, una volta completata l'Offerta Abertis, intenda procedere a una vendita della Partecipazione Cellnex (a tal fine è stata condotta da Mediobanca una procedura volta a verificare l'interesse di selezionate controparti ad acquistare una quota di Cellnex).
Qualora Atlantia comunichi che non intende vendere, o non comunichi alcunché, essa manterrà la facoltà di esercitare il Diritto di Put fino alla scadenza del 16 aprile 2018 ma non potrà cedere, né impegnarsi a cedere, la Partecipazione Cellnex sino alla scadenza del 12° mese
1 La partecipazione oggetto dell'Opzione Call Cellnex può essere, per scelta di Atlantia o del soggetto designato da effettuare entro 10 giorni dalla data di regolamento dell'Offerta Abertis, accresciuta al 34%, corrispondente alla quota del capitale di Cellnex complessivamente posseduta da Abertis. Il Diritto di Put è riferito a una partecipazione del 29,9% e la proposta di Edizione prevede che, entro la fine del 3° mese dal regolamento dell'Offerta Abertis, Atlantia debba cedere, qualora abbia esercitato il diritto di incrementare al 34% la partecipazione oggetto di acquisto nell'ambito dell'Opzione Call Cellnex, o, qualora non abbia
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successivo al completamento dell'Offerta Abertis.
Qualora Atlantia comunichi che intende vendere la Partecipazione Cellnex, la cessione dovrà avvenire nel rispetto delle seguenti condizioni
Qualora, per effetto delle anzidette previsioni, avvenga la vendita della Partecipazione Cellnex (la Cessione) da Atlantia a Edizione, quest'ultima riconoscerà ad Atlantia:
esercitato detto diritto, far sì che Abertis abbia ceduto il rimanente 4,1% del capitale di Cellnex a parti non correlate di Atlantia.
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intenda cedere la maggioranza della Partecipazione Cellnex (la Quota di Controllo) entro i 3 anni successivi all'esecuzione della Cessione, Atlantia potrà presentare una prima offerta vincolante di acquisto della Quota di Controllo a seguito della quale:
Essendo Edizione una parte correlata di Atlantia, il Comitato Amministratori Indipendenti per le Operazioni con Parti Correlate di Atlantia (di seguito il Comitato), alla luce della rilevanza della possibile operazione di investimento in Cellnex che determinerebbe un esborso di circa 1,5 miliardi, ci ha chiesto di esaminare le condizioni economiche della proposta di Edizione.
Per lo svolgimento dell'incarico relativamente al tema del presente parere abbiamo esaminato i seguenti documenti:
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Abbiamo avuto colloqui con i membri del Comitato e con il management di Atlantia nei quali il tema è stato discusso e ai quali hanno partecipato anche il consulente legale e il consulente finanziario incaricati dal Comitato per l'esame di ulteriori profili dell'operazione qui esaminata.
Il nostro incarico è stato svolto sulla base delle informazioni forniteci dal Comitato e dal management di Atlantia per iscritto e oralmente, sulla cui veridicità, accuratezza e completezza abbiamo fatto pieno affidamento e in relazione alle quali non abbiamo effettuato alcuna analisi o verifica autonoma e indipendente.
Il presente parere, che ha la finalità di esprimere il nostro giudizio sulle condizioni economiche della proposta di Edizione, è stato redatto esclusivamente a beneficio del Comitato e non potrà essere menzionato o citato né il suo contenuto potrà essere, in tutto o in parte, riprodotto o divulgato a terzi (anche in forma sintetica) senza la nostra preventiva autorizzazione scritta, salvo il caso di richiesta da parte di Autorità di vigilanza.
Il presente parere contiene una valutazione esclusivamente in termini di correttezza sostanziale delle condizioni economiche, non rientrando in alcun modo nell'esame richiestoci per la sua formulazione l'effettuazione di analisi e approfondimenti sulla convenienza della proposta e sull'interesse di Atlantia ad accettarla, che non abbiamo dunque condotto.
Non assumiamo alcuna responsabilità in merito all'aggiornamento del parere alla luce di eventi, circostanze, condizioni di mercato che dovessero verificarsi successivamente alla sua predisposizione.
L'operazione rilevante per il Comitato è quella con Edizione, tuttavia l'opinione sulle condizioni economiche della proposta della parte correlata richiede l'esame congiunto di essa con le
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condizioni dell'Opzione Call Cellnex, perfezionata da Atlantia con controparti terze, perché vi è un collegamento giuridico ed economico tra l'Opzione Call Cellnex e la proposta contrattuale di Edizione.
La decisione di Atlantia di accettare la proposta di Edizione è naturalmente sul piano logico subordinata alla decisione di esercitare l'Opzione Call Cellnex.
Per Atlantia vi sono tre scenari possibili: 1) non far nulla, e in questo caso indirettamente, tramite Abertis, deterrebbe per il 50% la Partecipazione Cellnex; 2) esercitare l'Opzione Call Cellnex per detenere la Partecipazione Cellnex a medio-lungo termine; 3) esercitare l'Opzione Call Cellnex e accettare la proposta di Edizione.
La proposta di Edizione permetterebbe ad Atlantia di decidere se detenere la Partecipazione Cellnex a medio-lungo termine, e quindi non esercitare il diritto di vendita, sino al 4 aprile, ma in tal caso Atlantia dovrebbe impegnarsi a non vendere la Partecipazione Cellnex per 12 mesi dal completamento dell'Offerta Abertis.
Il grado di libertà consentito da questa previsione è di scarsa importanza, perché la decisione di acquisire l'intera Partecipazione Cellnex per detenerla sarebbe certamente di carattere strategico e non vi è plausibilmente alcun particolare beneficio a che una tale decisione venga posposta di pochi giorni. Il management di Atlantia ha già dichiarato che considera no core questa partecipazione e pertanto lo scenario della detenzione a medio-lungo termine non rientra tra quelli da considerare.
Ne consegue che questa parte della proposta di Edizione non produce effettivi benefici per Atlantia e che perciò l'accettazione di essa avrebbe ragione soltanto se l'intendimento è quello di vendere a Edizione la Partecipazione Cellnex acquisita.
Prima facie sembrerebbe perciò da confrontare lo scenario di vendita della Partecipazione Cellnex ad Edizione con lo scenario della vendita a terzi senza i vincoli derivanti dall'adesione alla proposta di Edizione.
Sotto questo profilo, è rilevante tener conto della circostanza che il processo di vendita organizzato da Mediobanca si è concluso senza la ricezione di alcuna proposta vincolante e quindi non vi è in questo momento la possibilità di un confronto tra offerte concorrenti.
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In questo quadro, si dovrebbe perciò confrontare uno scenario nel quale Atlantia ricerchi un compratore assumendosi il rischio di un prezzo di vendita inferiore a quello proposto da Edizione e uno nel quale, invece, ha la certezza di conseguire il prezzo offerto da Edizione, che è pari a quello di acquisto.
In realtà il primo scenario, a ben vedere, è inesistente dal punto di vista di un agente economico razionale a causa della previsione di Earn-out a favore di Abertis contenuta nelle clausole dell'Opzione Call Cellnex perché l'eventuale differenza positiva tra il prezzo di vendita e il prezzo di esercizio dell'Opzione Call Cellnex deve essere ristornata ad Abertis. Ne consegue che Atlantia beneficerebbe del maggior prezzo solo per il 50% (in quanto socia di Abertis) mentre si assumerebbe per intero il rischio di perdita.
In conclusione, non sono da prendere in considerazione né lo scenario che Atlantia acquisti la Partecipazione Cellnex per detenerla a lungo termine né lo scenario che acquisti la Partecipazione Cellnex per vederla a un terzo.
I soli due scenari economicamente razionali dal punto di vista di Atlantia sono che non eserciti l'Opzione Call Cellnex e continui quindi a detenere indirettamente, tramite Abertis, il 50% della Partecipazione Cellnex, mantenendo così simmetria tra up-side opportunity e down-side risk, oppure che eserciti l'Opzione Call Cellnex ed entri nel contratto con Edizione per esercitare il Diritto di Put.
In questa prospettiva, il primo passaggio del processo valutativo volto a giudicare la correttezza sostanziale delle condizioni economiche offerte da Edizione è verificare se il prezzo compreso tra € 21,2 ed € 21,5 per azione riflette condizioni di mercato.
La Società è quotata nel mercato continuo della Borsa spagnola dal maggio 2015 e fa parte degli indici IBEX35 e EuroStoxx600.
Il mercato delle azioni di Cellnex è liquido (cfr. tabella seguente) e di conseguenza il prezzo di borsa è significativo e dovrebbe perciò rappresentare la sintesi dell'opinione degli operatori informati sul valore del capitale economico della società. In mercati efficienti sotto il profilo informativo il valore di mercato dovrebbe corrispondere al valore intrinseco.
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Come si vede, il prezzo massimo dell'intervallo stabilito nel Diritto di Put (€ 21,5 per azione) corrisponde alla media dei prezzi di chiusura degli ultimi 3 mesi di contrattazione.
| Orizzonte | Media prezzi di chiusura |
Media volume giornaliero (.000) |
% azioni emesse |
Controvalore medio giornaliero (€ mln) |
|---|---|---|---|---|
| last | 21,6 | 1.314 | 0,57% | 28 |
| 1 settimana | 21,9 | 1.150 | 0,50% | 25 |
| 1 mese | 21,9 | 1.027 | 0,44% | 22 |
| 3 mesi | 21,5 | 932 | 0,40% | 20 |
| 6 mesi | 21,0 | 940 | 0,41% | 20 |
| 1 anno | 19,4 | 1.032 | 0,45% | 20 |
| 2 anni | 16,9 | 1.040 | 0,45% | 17 |
Tabella 1. Prezzi e volumi del titolo azionario Cellnex
Fonte: Bloomberg, estrazione del 21 marzo 2018.
Rispetto al prezzo di collocamento dell'IPO (€ 14 per azione) del maggio 2015, il prezzo di mercato delle azioni Cellnex è salito molto (€ 21,6 al 21 marzo 2018) registrando circa un +56% di crescita (cfr. grafico seguente).
Figura 1. Andamento del titolo Cellnex rispetto all'indice di riferimento del mercato spagnolo (IBEX35)
Il confronto con l'indice di riferimento del mercato spagnolo mostra che, a partire dall'aprile 2017, il prezzo delle azioni Cellnex ha registrato rendimenti nettamente superiori rispetto al mercato. Questo andamento probabilmente è in parte anche dovuto alla circostanza che in quel mese sono state diffuse le prime notizie sulla possibilità che Cellnex fosse oggetto di vendita.
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Gli analisti finanziari comparano di solito Cellnex con un campione composto da talune società che operano in prevalenza nel mercato delle infrastrutture per le telecomunicazioni (SBA Communications, Crown Castle International, America Tower, INWIT) e da talaltre che si occupano principalmente di "broadcasting" (RAI Way, EI Towers), perché Cellnex agisce in entrambe le aree di business anche se con preponderanza nel settore delle infrastrutture per le telecomunicazioni.
Se si confronta l'evoluzione del prezzo di Cellnex con quella del prezzo delle società comparabili, si nota che nell'ultimo anno vi è un maggiore allineamento con il primo sottogruppo, che ha registrato anch'esso una notevole crescita della capitalizzazione. Pertanto se ne può dedurre che, almeno in parte, l'aumento del prezzo delle azioni Cellnex è da attribuire al miglioramento delle prospettive del mercato delle telecomunicazioni.
| Periodo | Cellnex Telecom |
SBA Comm. |
Crown Castle Int. |
American Tower |
INWIT | RAI Way |
EI Towers |
|---|---|---|---|---|---|---|---|
| 1 mese | 7,7% | -1,4% | 1,7% | 3,6% | 12,3% | 1,5% | -2,4% |
| 3 mesi | 0,4% | 5,9% | 0,4% | 2,5% | 0,0% | -7,3% | -18,0% |
| 6 mesi | 14,1% | 15,2% | 7,9% | 3,1% | 14,2% | 0,1% | -8,1% |
| 1 anno | 40,6% | 42,7% | 23,1% | 24,4% | 33,6% | 0,5% | -10,5% |
Tabella 2. Rendimenti percentuali dei prezzi delle azioni di Cellnex e delle società comparabili
Fonte: Bloomberg, estrazione del 21/03/2018
Questa evidenza è coerente con la circostanza che Cellnex negli ultimi anni ha effettuato
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notevoli investimenti nel mercato delle infrastrutture per le telecomunicazioni, come risulta dai principali dati di bilancio (cfr. tabella seguente).
| € milioni | 31-dic-13 | 31-dic-14 | 31-dic-15 | 31-dic-16 | 31-dic-17 |
|---|---|---|---|---|---|
| Ricavi | 379,2 | 412,1 | 611,8 | 704,6 | 757,6 |
| % Crescita a/a | - | 9% | 48% | 15% | 8% |
| EBITDA | 166,5 | 177,1 | 232,9 | 287,1 | 352,0 |
| % Margine su ricavi | 43,9 | 43% | 38% | 41% | 46% |
| Reddito netto | 78,6 | 57,7 | 59,8 | 56,4 | 52,4 |
| % Margine su ricavi | 20,7 | 14% | 10% | 8% | 7% |
| Capex | 151 | 178 | 140 | 229 | 463 |
| % Crescita a/a | - | 18% | -21% | 63% | 102% |
| Totale attivi non correnti | 666 | 950 | 1.807 | 2.545 | 3.533 |
| % Crescita a/a | - | 43% | 90% | 41% | 39% |
| Net debt | 157 | 322 | 936 | 1.508 | 2.279 |
| % Crescita a/a | - | 105% | 191% | 61% | 51% |
Tabella 3. Sintesi di alcune poste del bilancio di Cellnex
Fonte: elaborazioni Bloomberg
I dati mostrano che tra il 2013 e il 2017 vi è stata una forte crescita degli investimenti in capitale fisso e parallelamente un altrettanto forte aumento del debito finanziario.
Lo sforzo finanziario fatto dalla società per sostenere gli investimenti si riflette negli indicatori di bilancio, soprattutto se essi vengono confrontati con quelli delle società comparabili.
| Società | Paese | Mkt Cap (€ mln) |
Net debt/ Ebitda |
Capex/EV | Ammortamento/ EBITDA |
|---|---|---|---|---|---|
| Cellnex Telecom | Spagna | 5.007 | 7,0 | 6,23% | 70% |
| Media campione | 3,9 | 1,3% | 39% | ||
| Media americane | 6,8 | 1,4% | 53% | ||
| Media italiane | 0,9 | 1,2% | 26% | ||
| SBA Communications | USA | 15.853 | 8,4 | 0,62% | 58% |
| Crown Castle International | USA | 36.331 | 6,9 | 2,40% | 54% |
| American Tower | USA | 51.096 | 5,2 | 1,16% | 46% |
| INWIT | Italia | 3.720 | 0,2 | 0,95% | 7% |
| RAI Way | Italia | 1.273 | 0,1 | 1,45% | 37% |
| EI Towers | Italia | 1.265 | 2,3 | 1,07% | 34% |
Tabella 4. Confronto tra Cellnex e le società comparabili; anno 2017
Fonte: Bloomberg
L'elevato livello di indebitamento di Cellnex risulta dal rapporto tra il debito finanziario e l'ebitda, che è molto più alto della media del campione ed è anche più alto di quello delle società
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comparabili statunitensi, le quali però, avendo dimensione di gran lunga maggiore, hanno presumibilmente più gradi di libertà nel gestire sia la leva finanziaria sia la leva operativa.
Assai significativa rispetto al valore dell'impresa (enterprise value; EV) è l'incidenza dei capex, che nel caso di Cellnex è molte volte superiore a quella di tutte le società comparabili.
L'analisi dei multipli di mercato permette di verificare in che misura i prezzi di borsa riflettono le specifiche caratteristiche di ciascuna società. Il multiplo più rappresentativo è il rapporto tra l'enterprise value (EV), cioè il valore di mercato dell'impresa indipendentemente dall'entità del debito, e l'ebitda, che è una misura di redditività non influenzata dagli interessi sul debito, dalle svalutazioni e dagli accantonamenti.
| EV/Ricavi | EV/EBITDA | |||||
|---|---|---|---|---|---|---|
| Società | Paese | EV (€ mln) | 2018 | 2019 | 2018 | 2019 |
| Cellnex Telecom | Spagna | 7.428 | 8,4 | 7,9 | 18,0 | 16,5 |
| Media campione | 10,1 | 9,5 | 17,0 | 15,8 | ||
| Media americane | 12,9 | 12,1 | 20,7 | 19,1 | ||
| Media italiane | 7,2 | 6,9 | 13,3 | 12,5 | ||
| SBA Communications | USA | 23.686 | 15,4 | 14,3 | 22,3 | 20,4 |
| Crown Castle International | USA | 51.138 | 11,6 | 10,9 | 20,4 | 18,9 |
| American Tower | USA | 69.242 | 11,7 | 11,0 | 19,3 | 18,0 |
| INWIT | Italia | 3.766 | 10,0 | 9,4 | 17,6 | 16,0 |
| RAI Way | Italia | 1.289 | 6,0 | 5,8 | 10,9 | 10,5 |
| EI Towers | Italia | 1.563 | 5,7 | 5,5 | 11,3 | 11,0 |
Tabella 5. Analisi dei multipli
Fonte: Bloomberg
Questo multiplo mostra per Cellnex livelli leggermente superiori alla media del campione e più vicini a quelli delle società statunitensi e segnala quindi che ai prezzi attuali vi è una piena valorizzazione delle prospettive di crescita sebbene la struttura finanziaria della società appaia meno robusta di quella delle società utilizzate per la comparazione.
Si può perciò concludere che il prezzo di € 21,2 – 21,5 per azione, riflettendo il quadro informativo disponibile ed essendo in linea con i valori espressi dai mercati azionari per questa tipologia di aziende, è sostanzialmente corretto dal punto di vista di Atlantia.
Il secondo passaggio del processo valutativo delle condizioni economiche offerte da Edizione riguarda l'effetto che si produce per Atlantia in base alle modalità e alle condizioni di esercizio del ADVISORY FIRM
La previsione secondo la quale, "in caso di esercizio del Diritto di Put, l'acquisto della Partecipazione da parte di Edizione avverrà: (a) mediante destinazione di Edizione stessa quale acquirente della Partecipazione e (b) alle stesse condizioni e verso gli stessi impegni" previsti nella Opzione Call Cellnex, rende Atlantia neutrale perché vi è una vera e propria sostituzione di Atlantia con Edizione.
Questa sostituzione alle medesime condizioni avverrà anche nell'ipotesi in cui Atlantia, prima del 16 aprile 2018, dovesse ricevere un'offerta vincolante da parte di un terzo per l'intera Partecipazione Cellnex ad un prezzo non superiore di almeno il 10% rispetto al Corrispettivo, perché Atlantia dovrà comunque designare Edizione per l'acquisto della Partecipazione ad un prezzo pari al Corrispettivo originariamente previsto. In questo caso Atlantia sosterrebbe un costo opportunità perché avrebbe potuto beneficiare del 50% del maggior prezzo che sarebbe stato riconosciuto per effetto dell'Earn-out ad Abertis.
Nel caso Atlantia dovesse ricevere un'offerta per un prezzo superiore per più del 10% rispetto al Corrispettivo, Atlantia dovrà necessariamente dichiararsi direttamente acquirente della Partecipazione Cellnex, non potendo a quel punto designare né il terzo offerente né Edizione, e, rivendendo la partecipazione acquistata al terzo offerente o a Edizione, qualora quest'ultima decida di pagare lo stesso prezzo del terzo, dovrà, in forza dell'Earn-out, trasferire il maggior prezzo rispetto al Corrispettivo ad Abertis, e perciò indirettamente beneficerà del 50% di quel maggior prezzo.
Il Diritto di Put, pertanto, di per sé non produce per Atlantia alcun vantaggio economico differenziale rispetto allo scenario di non accettare la proposta di Edizione perché l'Earn-out previsto nell'Opzione Call Cellnex andrebbe in qualunque scenario per il 50% a beneficio di Atlantia. Tuttavia, esso permette ad Atlantia, nello scenario di vendita a prezzo certo, di mantenere la possibilità, sino al 16 aprile, di ottenere un parziale e indiretto beneficio economico dall'eventuale offerta di un terzo a fronte di un costo opportunità.
Il terzo passaggio del processo valutativo delle condizioni economiche offerte da Edizione riguarda le clausole che, secondo la proposta di Edizione, consentono ad Atlantia di re-investire
ADVISORY FIRM
acquisendo in trasparenza il 6% circa del capitale di Cellnex.
Questa facoltà è un'opzione con prezzo di esercizio pari al prezzo di mercato al momento dell'esercizio. Il suo valore economico è pertanto, nel caso di una società quotata, sostanzialmente nullo perché in astratto quella partecipazione potrebbe essere comperata sul mercato. Tuttavia, ad essa sono connessi diritti di governance e diritti di prima offerta e di prelazione che, pur essendo un arricchimento della partecipazione, hanno un valore non misurabile.
* * * * *
In conclusione, avendo il management di Atlantia escluso di voler acquisire la Partecipazione Cellnex per detenerla a medio-lungo termine, l'esercizio dell'Opzione Call Cellnex senza anche contestualmente accettare la proposta di Edizione non è razionale dal punto di vista economico perché Atlantia, per effetto della clausola di Earn-out, si troverebbe in una condizione di asimmetria tra l'opportunità di guadagno, della quale beneficerebbe solo per il 50%, e il rischio di perdita, che invece graverebbe su di essa per intero. Pertanto, se ci si pone a valle della decisione dell'esercizio dell'Opzione Call Cellnex, non v'è discussione sulla convenienza di accettare la proposta di Edizione, che è l'unica esistente.
Se invece si procede ad un confronto tra lo scenario in cui Atlantia non eserciti l'Opzione Call Cellnex e quello in cui eserciti l'Opzione Call Cellnex e contemporaneamente accetti la proposta di Edizione con l'obiettivo di esercitare il Diritto di Put, valgono le seguenti considerazioni sulla correttezza sostanziale delle condizioni economiche offerte da Edizione:
ADVISORY FIRM
costo opportunità;
la facoltà di re-investire in Cellnex a condizioni di mercato, seppur corredata da diritti accessori, è, a nostro parere, di valore non incidente in maniera significativa sulle condizioni economiche complessive dell'offerta.
Infine, sotto il profilo della convenienza per Atlantia, un rilievo certamente lo ha la circostanza che Cellnex ha un debito finanziario significativo che, sebbene non sia consolidato linea per linea nel bilancio di Abertis, pertiene evidentemente pro quota al gruppo che farà capo ad Atlantia e quindi l'offerta di Edizione consente di migliorare la struttura finanziaria di Atlantia per effetto dell'incasso del prezzo e del trasferimento dell'anzidetto debito.
Si tratta di un aspetto che non attiene alle condizioni economiche dell'offerta ma che tuttavia potrebbe far propendere per lo scenario che, per le ragioni spiegate, implica necessariamente l'esercizio combinato dell'Opzione Call Cellnex e del Diritto di Put concesso da Edizione.
(prof. avv. Paolo Gualtieri)
Prof. avv. Paolo Gualtieri
Ordinario di Economia degli Intermediari Finanziari all'Università Cattolica del Sacro Cuore di Milano
Spettabile
Comitato Amministratori Indipendenti per le Operazioni con Parti Correlate di ATLANTIA s.p.a.
Milano, 23 marzo 2018
Egregi signori,
scriviamo ad integrazione del parere rilasciato sulla base della proposta di Edizione datata 20 marzo 2018.
Conformemente alle previsioni dell'articolo 8 punto b) del regolamento Consob in materia di operazioni con parti correlate, il Comitato non solo ha esercitato il suo diritto di richiedere informazioni ma ha anche formulato osservazioni al management che sta conducendo le trattative con Edizione.
All'esito delle trattative, molte delle osservazioni del Comitato sono state accolte e hanno migliorato la posizione di Atlantia.
Quelle che direttamente rilevano per la valutazione della correttezza sostanziale delle condizioni economiche, che è il profilo sottoposto al nostro esame, sono due:
ADVISORY FIRM
rispetto al Corrispettivo, Edizione ha il diritto di acquistare la partecipazione Cellnex ad un prezzo pari al Corrispettivo originariamente previsto, sostituendola con la previsione che il prezzo da corrispondere da parte di Edizione sia pari a quello offerto dal terzo o, in subordine, che la "franchigia" sia ridotta.
La modifica di cui alla lettera a) consente ad Atlantia di conseguire un prezzo per azione di € 21,50 che potrebbe essere superiore al prezzo di esercizio dell'Opzione Call Cellnex; l'eventuale differenza che dovesse essere ottenuta costituirebbe per Atlantia una remunerazione per la designazione di Edizione quale acquirente nell'Opzione Call Cellnex.
La modifica di cui alla lettera b) permette l'eliminazione o la riduzione del costo opportunità gravante su Atlantia costituito dal non poter beneficiare del 50% del maggior prezzo che indirettamente le sarebbe stato riconosciuto per effetto dell'Earn-out ad Abertis.
(prof. avv. Paolo Gualtieri)
Prof. avv. Paolo Gualtieri
Ordinario di Economia degli Intermediari Finanziari all'Università Cattolica del Sacro Cuore di Milano
Spettabile
Comitato Amministratori Indipendenti per le Operazioni con Parti Correlate di ATLANTIA s.p.a.
Milano, 26 marzo 2018
Egregi signori,
in data 22 marzo 2018, in esecuzione dell'incarico conferitoci, abbiamo redatto il parere sulla proposta di Edizione contenuta nel documento "Re: – Lettera di supporto e backing per Atlantia relativamente a Cellnex" del 20 marzo 2018 e lo abbiamo illustrato nel corso della riunione del Comitato degli amministratori indipendenti del 23 marzo iniziato alle ore 8.30.
Durante la riunione, a seguito delle osservazioni formulate dal Comitato al management di Atlantia, Edizione ha dichiarato la propria disponibilità a migliorare talune condizioni della proposta. Abbiamo, pertanto, come richiestoci dal Comitato, espresso nella comunicazione integrativa del 23 marzo 2018 le nostre considerazioni sulle prospettate modifiche direttamente rilevanti per la valutazione della correttezza sostanziale delle condizioni economiche (profilo sottoposto al nostro esame).
Successivamente, Edizione ha inviato un'integrazione alla "lettera di supporto e backing per Atlantia relativamente a Cellnex" (l'Integrazione),sulla quale ci è stato chiesto di esprimerci per completare l'attività svolta.
I profili rilevanti per le questioni sottoposte al nostro esame sono i seguenti:
a) è stata prevista la modifica del corrispettivo del Diritto di Put stabilendo un prezzo fisso unitario per azione di € 21,5 (Corrispettivo Fisso) pari al massimo
dell'intervallo in precedenza indicato; il medesimo prezzo sarà applicato anche per l'esercizio dell'Opzione Call Cellnex; questa previsione contenuta nell'Integrazione ripristina l'identità tra prezzo di esercizio dell'Opzione Call Cellnex e prezzo di esercizio del Diritto di Put che era presente nella proposta originaria, con la sola differenza che è stato stabilito un prezzo unico e predefinito anziché un prezzo variabile con minimo e massimo;
b) la "franchigia" prevista nell'articolo 4, b, (i) della proposta di Edizione in caso di offerta da parte di un compratore terzo ad un prezzo superiore al Corrispettivo della proposta di acquisto di Edizione è stata stabilita indicando come riferimento un prezzo per azione di € 22,2 invece che una maggiorazione percentuale del prezzo di € 21,5 per azione.
La previsione di cui alla lettera a), a nostro parere, è più conforme al meccanismo di designazione di Edizione quale acquirente nell'ambito dell'esercizio dell'Opzione Call Cellnex e appare perciò una scelta condivisibile sotto il profilo del pieno rispetto degli accordi con Abertis.
Con riferimento alla previsione di cui alla lettera b), il limite di prezzo di € 22,2 corrisponde a un incremento del 3,256% del prezzo di € 21,5 e quindi determina una riduzione, rispetto all'originario 10%, del costo opportunità, che graverebbe su Atlantia nella misura del 50% per effetto dell'Earn-out riconosciuto ad Abertis, qualora giungesse prima del 16 aprile 2018 un'offerta di acquisto non superiore al prezzo di € 22,2 per azione, che Atlantia non potrebbe accettare .
(prof. avv. Paolo Gualtieri)
~ LEONARDO & co. in Association with Haulihan Lokey
Atlantia S.p.A. Via Antonio Nibby, 20 00161 Rome ltaly Attn: Committee of lndependent Directors for Related Parties Transactions
23/03/2018
Dear lndependent Directors:
We understand that:
LEO:'>IARDO & CO. S.p.A. Via dell'Orso, B 20121 Milan, Italy T el +39 02 87331.1, Fax •39 02 72094560 P.iva e cod. fiscale 04917520969 v;ww.Leonardo-ço.com info@leonard<r<:o.com Jeonardoecospa@legalmaìl.it
Company {the "lndependent Directors") is due to provide a "motivated opinion" including, infer alia, its evaluation of the Transaction and its opinion on the fairness of the Consideration to be received by the Company in the Transaction;
• far the release of such "motivated opinion", the lndependent Directors can opt to avail themselves of one or more independent experts to assess the fairness of the Consideration to be received by the Company in the Transaction.
The lndependent Directors have requested that Leonardo & Co. S.p.A. ("Leonardo") provides an opinion (the "Opinion") to the lndependent Directors as to whether, as of the date hereof, the Consideration to be received by the Company in the Transaction is fair to the Company from a financial point of view.
In connection with this Opinion, we have made such reviews, analyses and inquiries as we have deemed necessary and appropriate under the circumstances. Among other things, we have:
We have relied upon and assumed, without independent verification, the accuracy and completeness of ali data, materia! and other information furnished, or otherwise made available, to us, discussed with or reviewed by us, or publicly available, and do not assume any responsibility with respect to such data, materia! and other information. We express no opinion with respect to publicly available research analyst estimates relating to Cellnex or the assumptions on which they are based. We have relied upon and assumed, without independent verification, that there has been no change in the business, assets, liabilities, financial condition, results of operations, cash flows or prospects of Cellnex since the date of the most recent financial statements and other information, flnancial or otherwise, provided to us that would be materia! to our analyses or this Opinion, and that there is no information or any facts that would make any of the information reviewed by us incomplete or misleading.
We have relied upon and assumed, without independent verification, that (i) the Transaction will be consummated in a manner that complies in ali respects with ali applicable statutes, rules and regulations, and (ii) ali governmental, regulatory, and other consents and approvals necessary for the consummation of the Transaction will be obtained and that no delay, limitations, restrictions or conditions will be imposed or amendments, modifications or waivers made that would have an effect on the Transaction, or Cellnex that would be materia! to our analyses or this Opinion. In addition, we have relied upon and assumed, without independent verification, that the fina! forms of any draft documents identified above will not differ in any respect from the drafts of said documents.
Furthermore, in connection with this Opinion, we have not been requested to make, and have not made, any physical inspection or independent appraisal or evaluation of any of the assets, properties or liabilities (fixed, contingent, derivative, off-balance-sheet or otherwise) of Cellnex or any other party, nor were we provided with any such appraisal or evaluation. We have
undertaken no independent analysis of any potential or actuallitigation, regulatory action, possible unasserted claims or other contingent liabilities, to which Cellnex is or may be a party or is or may be subject, or of any governmental investigation of any possible unasserted claims or other contingent liabilities to which Cellnex is or may be a party or is or may be subject.
We have not been requested to, and did not, (a) initiate or participate in any discussions or negotiations with, or solicit any indications of interest from, third parties with respect to the Transaction, the securities, assets, businesses or operations of Cellnex or any other party, or any alternatives to the Transaction, (b) negotiate the terms of the Transaction, or (c) advise the lndependent Directors or any other party with respect to alternatives to the Transaction. This Opinion is necessarily based on financial, economie, market and other conditions as in effect on, and the information made available to us as of, the date hereof. We have not undertaken, and are under no obligation, to update, revise, reaffirm or withdraw this Opinion, or otherwise comment on or consider events occurring or coming to our attention after the date hereof. We are not expressing any opinion as to what the value of the Cellnex common stock actually will be when exchanged pursuant to the Transaction or the price or range of prices at which the Cellnex common stock may be purchased or sold, or otherwise be transferable, at any time.
This Opinion is furnished solely for the use of the lndependent Directors (solely in their capacity as such) in connection with their evaluation of the Transaction and may not be relied upon by any other person or entity (including, without limitation, security holders, creditors or other constituencies of the Company) or used for any other purpose without our prior written consent. This Opinion should not be construed as creating any fiduciary duty on Leonardo's part to any party. This Opinion is not intended to be, and does not constitute, a recommendation to the lndependent Directors, any security holder or any other party as to how to act or vote with respect to any matter relating to the Transaction or otherwise. This Opinion may not be disclosed, reproduced, disseminated, quoted, summarized or referred to at any time, in any manner or for any purpose, nor shall any references to Leonardo or any of its affiliates be made, without the prior written consent of Leonardo. This Opinion can be disclosed by the Company solely to the extent required pursuant to Consob regulation 17221/201 O.
In the ordinary course of business, certain of our employees and affiliates, as well as investment funds in which they may have financial interests or with which they may co-invest, may acquire, hold or sell, long or short positions, or trade, in debt, equity, and other securities and financial instruments (including loans and other obligations) of, or investments in, Cellnex, the Company or any other party that may be involved in the Transaction and their respective affiliates or any currency or commodity that may be involved in the Transaction.
Leonardo and certain of its affiliates have in the past provided investment banking, financial advisory and/or other financial or consulting services to the Company, Edizione and
Abertis, for which Leonardo and such affiliates have received compensation. Leonardo and certain of its affiliates may previde investment banking, financial advisory and/or other financial or consulting services to Cellnex, the Company, Edizione and other participants in the Transaction or certain of their respective affiliates or security holders in the future, for which Leonardo and such affiliates may receive compensation. Furthermore, in connection with bankruptcies, distressed situations, restructurings, and similar matters, Leonardo and certain of its affiliates may have in the past acted, may currently be acting and may in the future act as financial advisor to debtors, creditors, equity holders, trustees, agents and other interested parties (including, without limitation, formai and informai committees or groups of creditors) that may have included or represented and may include or represent, directly or indirectly, or may be or have been adverse to, Cellnex, the Company, Edizione, other participants in the Transaction or certain of their respective affiliates or security holders, for which advice and services Leonardo and such affiliates have received and may receive compensation.
Leonardo will receive a fee for rendering this Opinion, which is not contingent upon the successful completion of the Transaction. The Company has agreed to reimburse certain of our expenses and to indemnify us and certain related parties for certain potentialliabilities arising out of our engagement.
We have not been requested to apine as to, and this Opinion does not express an opinion as to or otherwise address, among other things: (i) the underlying business decision of lndependent Directors, the Company's Board of Directors (the "Board of Directors"), the Company's security holders or any other party to proceed with or effect the Transaction, (ii) the terms of any arrangements, understandings, agreements or documents related to, or the form, structure or any other portion or aspect of, the Transaction or otherwise {other than the Consideration to the extent expressly specified herein), (iii) the fairness of any portion or aspect of the Transaction to the holders of any class of securities, creditors or other constituencies of the Company, or to any other party, except if and only to the extent expressly set forth in the last sentence of this Opinion, (iv) the relative merits of the Transaction as compared to any alternative business strategies or transactions that might be available for the Company or any other party, (v} the fairness of any portion or aspect of the Transaction to any one class or group of the Company's or any other party's security holders or other constituents vis-à-vis any other class or group of the Company's or such other party's security holders or other constituents (including, without limitation, the allocation of any consideration amongst or within such classes or groups of security holders or other constituents), (vi} whether or not the Company, Edizione, their respective security holders or any other party is receiving or paying reasonably equivalent value in the Transaction, (vii} the solvency, creditworthiness or fair value of Cellnex, the Company, Edizione or any other participant in the Transaction, or any of their respective assets, under any applicable laws relating to bankruptcy, insolvency, fraudulent conveyance or similar matters, or (viii) the fairness, financial or otherwise, of the amount, nature or any other aspect of any compensation to or consideration
payable to or received by any officers, directors or employees of any party to the Transaction, any class of such persons or any other party, relative to the Consideration or otherwise. Furthermore, no opinion, counsel or interpretation is intended in matters that require legai, regulatory, accounting, insurance, tax or other similar professional advice. lt is assumed that such opinions, counsel or interpretations have bee n or will be obtained from the appropriate professional sources. Furthermore, we have relied, with the consent of the lndependent Directors, on the assessments by the lndependent Directors, the Board of Directors, the Company and their respective advisors, as to ali legai, regulatory, accounting, insurance, tax and other similar matters with respect to Cellnex, the Company and the Transaction or otherwise. The issuance of this Opinion was approved by a committee authorized to approve opinions of this nature.
The Opinion is issued in the English language and reliance may only be placed on this Opinion as issued in the English language. lf any translations of this Opinion are delivered, they are provided only for ease of reference, have no legai effect and Leonardo makes no representation as to (and accepts no liability in respect of) the accuracy or completeness of any such translations.
In arder to express an opinion, as of the date hereof, that the Consideration to be received by the Company in the Transaction is fair to the Company from a financial point of view, valuation methods and criteria commonly used in national and international practice for similar transactions have been used.
lt should be noted that, while the valuation methods used have been assigned various levels of meaningfulness, ali such methods should be considered together, such that (i) reliance is not placed upon one single valuation method and (ii) no specific estimated value (or value range} is indicated far the Cellnex Stake.
1t should also be noted that the valuations underlying the Opinion were carried out on a stand-alone basis and assuming that conditions far the business continuity of the Company continue to be met. Subsequent events that could materially affect the conclusion set forth in this Opinion include, without limitation, changes in industry performance or market conditions, as well as changes to the business, financial conditions and results of operations of the Company.
The following valuation methods have been used far this Opinion:
(iii) market multiples of companies considered comparable ("Market Multiples");
This summary does not purport to be an exhaustive description of the fìnancial analyses undertaken by Leonardo.
Set forth below are the values per share of the Company resulting from the application of the various valuation methods indicated above, with an indication of the corresponding level of meaningfulness assigned, which was taken into account for purposes of the conclusions set forth in this Opinion.
| Method | Value per share (E) | Level of meaningfulness of the method |
||
|---|---|---|---|---|
| Minimum | Maximum | |||
| A. | Stock Exchange Values | |||
| A.1 | Up to March 13h, 2018 | 16.01 | 21.44 | Medium - High |
| A.2 | Up to May 1 ffh, 2017 | 14.39 | 16.08 | Medium - High |
| B. | DCF | 16.73 | 20.36 | Medium |
| C. | Market Multiples | 19.84 | 20.84 | Medium |
Based upon and subject to the foregoing, and in reliance thereon, it is our opinion that, as of the date hereof, the Consideration to be received by the Company in the Transaction is fair to the Company from a financial point of view.
Very truly yours,
LEONARDO & CO. S.P.A.
Filippo Bruno André Pichler
;N'
8
2 3 M A R C H 2 0 1 8 | C O N F I D E N T I A L
This presentation, and any supplemental information (written or oral) or other documents provided in connection therewith (collectively, the "Materials"), are provided solely for the information of the Committee of Independent Directors for Related Party Transactions (the "Independent Directors") of Atlantia S.p.A. ("Atlantia" or the "Company") by Leonardo & Co. S.p.A. ("Leonardo" or "we") in connection with the Independent Directors' consideration of whether to exercise a put option (the "Put Option") offered by the Company to Edizione S.r.l. ("Edizione") on March 20 2018, to purchase for the Consideration (as defined in the subsequent pages of these Materials) a 29.9% stake in Cellnex Telecom S.A. ("Cellnex") from the Company (the "Transaction") conditional upon and further to the exercise of a call option held by the Company to purchase all or part of the shares currently held by Abertis S.A. ("Abertis") in Cellnex (such call option held by Atlantia, the "Cellnex Call") in the context of the acquisition by Atlantia, jointly with Actividades de Construcción y Servicios S.A. ("ACS") and Hochtief AG ("Hochtief"), of Abertis (such acquisition, the "Abertis Acquisition") through a public tender offer (the "Tender Offer"). This presentation is incomplete without reference to, and should be considered in conjunction with, any supplemental information provided by and discussions with Leonardo in connection therewith. Any defined terms used herein shall have the meanings set forth herein, even if such defined terms have been given different meanings elsewhere in the Materials.
The Materials are for discussion purposes only and cannot be read separately from the opinion (the "Opinion") provided by Leonardo to the Independent Directors as to whether, as of the date of such Opinion, the Consideration to be received by Atlantia, should the Put Option be exercised, is fair to Atlantia from a financial point of view. The Materials were prepared for specific persons familiar with the business and affairs of Cellnex and the Company for use in a specific context and were not prepared with a view to public disclosure or to conform with any disclosure standards under any laws, rules or regulations, and none of the Independent Directors, the Company or Leonardo takes any responsibility for the use of the Materials by persons other than the Independent Directors. The Materials are provided on a confidential basis solely for the information of the Independent Directors and may not be disclosed, summarized, reproduced, disseminated or quoted or otherwise referred to, in whole or in part, without Leonardo's express prior written consent.
These Materials are not intended, and should not be construed, to be investment advice of any kind recommending any course of action. Furthermore, these Materials shall not be considered as legal, tax, accounting or other similar advice by Leonardo or any of its representatives.
The Materials necessarily are based on financial, economic, market and other conditions as in effect on, and the information available to Leonardo as of, the date of the Materials. Although subsequent developments may affect the contents of the Materials, Leonardo has not undertaken, and is under no obligation, to update, revise or reaffirm the Materials. The Materials are not intended to provide the sole basis for evaluation of the Transaction and do not purport to contain all information that may be required. The Materials do not address the underlying business decision of the Company or any other party to proceed with or effect the Transaction or the relative merits of the Transaction as compared to any alternative business strategy or transactions that might be available for the Company or any other party. The Materials do not constitute any opinion, nor do the Materials constitute a recommendation to the Independent Directors, the Company, any security holder of the Company or any other party as to how to vote or act with respect to any matter relating to the Put Option, the Transaction or otherwise or whether to buy or sell any assets or securities of any company. Leonardo's only opinion is the Opinion, if any, that is actually delivered to the Independent Directors. The Materials may not reflect information known to other professionals in other business areas of Leonardo and its affiliates.
The preparation of the Materials was a complex process involving quantitative and qualitative judgments and determinations with respect to the financial, comparative and other analytic methods employed and the adaption and application of these methods to the unique facts and circumstances presented and, therefore, is not readily susceptible to partial analysis or summary description. Furthermore, Leonardo did not attribute any particular weight to any analysis or factor considered by it, but rather made qualitative judgments as to the significance and relevance of each analysis and factor. Each analytical technique has inherent strengths and weaknesses, and the nature of the available information may further affect the value of particular techniques. Accordingly, the analyses contained in the Materials must be considered as a whole. Selecting portions of the analyses, analytic methods and factors without considering all analyses and factors could create a misleading or incomplete view. The Materials reflect judgments and assumptions with regard to industry performance, general business, economic, regulatory, market and financial conditions and other matters, many of which are beyond the control of the Company or other participants to the Transaction. Any estimates of value contained in the Materials are not necessarily indicative of actual value or predictive of future results or values, which may be significantly more or less favorable. Any analyses relating to the value of assets, businesses or securities do not purport to be appraisals or to reflect the prices at which any assets, businesses or securities may actually be sold. The Materials do not constitute a valuation opinion or credit rating. In preparing the Materials, Leonardo has not conducted any physical inspection or independent appraisal or evaluation of any of the assets, properties or liabilities (contingent or otherwise) of the Company, Cellnex or any other party and has no obligation to evaluate the solvency, creditworthiness or fair value of the Company, Cellnex or any other party under applicable laws relating to bankruptcy, insolvency or similar matters.
We have relied upon and assumed, without independent verification, the accuracy and completeness of all data, material and other information furnished, or otherwise made available, to us, discussed with or reviewed by us, or publicly available, make no representation or warranty (express or implied) in respect of the accuracy or completeness of such information and do not assume any responsibility with respect to such data, material and other information. We express no opinion with respect to publicly available research analyst estimates for Cellnex or the assumptions on which they are based. We have relied upon and assumed, without independent verification, that there has been no change in the business, assets, liabilities, financial condition, results of operations, cash flows or prospects of Cellnex since the respective dates of the most recent financial statements and other information, financial or otherwise, provided to obtained by or reviewed by us that would be material to our analyses or this Opinion, that the final forms of any draft documents reviewed by us will not differ in any material respect from such draft documents and and that there is no information or any facts that would make any of the information reviewed by us incomplete or misleading.
The Materials do not constitute a commitment by Leonardo or any of its affiliates to underwrite, subscribe for or place any securities, to extend or arrange credit, or to provide any other services. In the ordinary course of business, certain of Leonardo's affiliates and employees, as well as investment funds in which they may have financial interests or with which they may co-invest, may acquire, hold or sell, long or short positions, or trade or otherwise effect transactions, in debt, equity, and other securities and financial instruments (including loans and other obligations) of, or investments in, the Company, Cellnex, Edizione, or more other parties that may be involved or have a financial interest in the Transaction and their respective affiliates (collectively, the "Interested Parties") or any currency or commodity that may be involved in the Transaction. Leonardo provides mergers and acquisitions, restructuring and other advisory and consulting services to clients which may have in the past included, or may currently or in the future include, one or more Interested Parties, for which services Leonardo has received, and may receive, compensation. Although Leonardo in the course of such activities and relationships or otherwise may have acquired, or may in the future acquire, information about one or more Interested Parties or the Transaction, or that otherwise may be of interest to the Company, Leonardo shall have no obligation to, and may not be contractually permitted to, disclose such information, or the fact that Leonardo is in possession of such information, to the Company or to use such information on the Company's behalf. Leonardo's personnel may make statements or provide advice that is contrary to information contained in the Materials. Leonardo's or its affiliates' proprietary interests may conflict with the Company's interests.
Leonardo is acting only for the Independent Directors in connection with the Transaction and no one else and shall not be responsible to any other person for providing the protections afforded to clients of Leonardo or for providing advice in connection therewith. To the maximum extent permissible under applicable law, each of Leonardo and its representatives expressly disclaims any and all liability to any person for the contents of, or for omissions from, the Materials or any written or oral communication transmitted or made in connection with the Materials, save to the Company subject to the terms of Leonardo's letter of engagement with the Company relating to the matters referred to herein and the assumptions and other limiting factors set out in this notice.
The list of disclaimers and working assumptions included in the Materials is not intended to be exhaustive. Please refer to the Opinion for a full list of disclaimers and working assumptions.
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| Introduction | 34 | |
| Valuation Considerations | 37 | |
| 6. | Appendix | 45 |
| DCF Details | 46 | |
| WACC Details | 49 | |
| Trading Comparables Description | 51 | |
| Historical Trading Multiples | 56 | |
| Brokers' Target Prices | 60 | |
| Transaction Multiples | 65 | |
| Other Valuation Materials | 68 | |
| Examined Documentation | 70 |
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| 6. | Appendix | 45 |
Status quo (pro forma following Abertis Acquisition)
a
b
c
The strike price of the Cellnex Call is equal to the weighted average price of the six months previous to the settlement of the Abertis Acquisition, cum dividend, with a minimum price of €21.20 and a maximum price of €21.50 per share (the "Call Exercise Price")
In the context of the agreement among Atlantia, ACS and Hochtief
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| 6. | Appendix | 45 |
15
In 2017 Cellnex continued along its business growth path, acquiring companies/assets and reinforcing its partnerships
Note: (1) Acquisition of up to 1,800 sites to be gradually transferred into Cellnex France over a 2-year period + up to 1,200 sites to be built over a 5-year period; (2) Including contribution of built to suit program of 400 sites and c.200 DAS nodes; (3) Up to 600 additional sites, to be gradually transferred into Cellnex France no later than 2020; (4) Construction of up to 1,000 additional sites by 2022; (5) EBITDA contribution expected upon completion of partial dismantling, ground lease renegotiation program and increased customer ratio Source: company data 16
Note: (1) 500 sites from Bouygues in 2016 + up to 3,000 sites from Bouygues in 2017 + 2 extensions with Bouygues (up to 600 acquired sites + up to 1,000 construction sites) + 300 sites under management alongside motorways; (2) Including contribution of build to suit program of 400 sites and c.200 DAS nodes; (3) Including broadcast, 551 sites from MásMóvil and DAS nodes; (4) Including Commscon's DAS nodes and built to suit program for Wind Tre Source: company data
Note: (1) Figures in €m; (2) Considering current Euribor rates; cost over full financing period to maturity; (3) Includes current dividend policy and no further perimeter changes; (4) RCF Euribor 1M; Credit facilities Euribor 1M and 3M; floor of 0% applies; (5) Maturity 5 years with 2 extensions of 1 year to be mutually agreed; (6) Includes c.£ 150m debt in GBP; natural hedge investment in Shere Group (UK); (7) CHF 132m debt in Swiss Francs at corporate level (natural hedge) + CHF 162m debt in Swiss Francs at local level in Switzerland (project financing); (8) Private placement; (9) Convertible bond into Cellnex shares (conversion price at €38 per share); (10) Bilateral loan; (11) EIB Source: company data
18
| €m | (1) 2014A |
2015A | 2016A | 2017A | CAGR '14A-'17A (%) |
|---|---|---|---|---|---|
| 1 Revenues |
436.0 | 611.8 | 704.6 | 789.3 | 21.9% |
| growth (%) |
- | 40.3% | 15.2% | 12.0% | |
| Staff costs |
(83 .9) |
(89 .3) |
(97 .5) |
(107 .4) |
|
| Other operating expenses |
(172 .3) |
(306 .8) |
(343 .7) |
(359 .5) |
|
| Change in provisions |
(2 .8) |
1.1 | 0.3 | 1.5 | |
| Losses on fixed assets |
(0 .3) |
(0 .1) |
(0 .2) |
(0 .2) |
|
| 2 EBITDA |
176.8 | 216.8 | 263.5 | 323.8 | 22.3% |
| (%) EBITDA margin |
40.6% | 35.4% | 37.4% | 41.0% | |
| Depreciation and amortization |
(91 .0) |
(153 .5) |
(176 .8) |
(225 .4) |
|
| EBIT | 85.8 | 63.3 | 86.7 | 98.4 | 4.7% |
| EBIT margin (%) |
19.7% | 10.3% | 12.3% | 12.5% | |
| Financial income |
1.5 | 0.4 | 1.2 | 1.5 | |
| Interest expenses |
(10 .2) |
(27 .9) |
(47 .0) |
(69 .6) |
|
| EBT | 77.0 | 35.9 | 41.0 | 30.4 | (26.7%) |
| (%) EBT margin |
17.7% | 5.9% | 5.8% | 3.8% | |
| Income taxes |
(19 .3) |
12.6 | (0 .6) |
0.4 | |
| Group profit / (loss) net |
57.7 | 48.5 | 40.4 | 30.8 | (18.9%) |
| 3 Dividend |
(48.3) | (8.1) | (21.1) | (20.0) |
19
| €m | 2014A | 2015A | 2016A | 2017A | |
|---|---|---|---|---|---|
| EBITDA | 176.8 | 216.8 | 263.5 | 323.8 | |
| EBITDA margin (%) |
40.6% | 35.4% | 37.4% | 41.0% | |
| 1 | (+) Non-recurring expenses |
- | 17.0 | 23.5 | 28.0 |
| 2 | (+) Advances to customers |
0.9 | 0.9 | 2.6 | 2.8 |
| EBITDA Adjusted |
177.7 | 234.7 | 289.6 | 354.5 | |
| EBITDA Adjusted margin (%) |
40.8% | 38.4% | 41.1% | 44.9% |
| €m | (1) 2014A |
2015A | 2016A | 2017A |
|---|---|---|---|---|
| Property , plant and equipment |
740.5 | 935.8 | 1,048.4 | 1,507.3 |
| Goodwill and intangible assets |
149.2 | 798.6 | 1,415.4 | 1,920.5 |
| Financial assets |
22.6 | 43.8 | 51.5 | 77.0 |
| 1 Fixed assets |
912.2 | 1,778.2 | 2,515.4 | 3,504.8 |
| Inventories | 0.7 | 3.4 | 2.0 | 1.3 |
| Trade and other receivables |
189.4 | 164.2 | 155.2 | 226.2 |
| Trade payables |
(209 .6) |
(181 .6) |
(166 .9) |
(248 .2) |
| Other / (liabilities) assets |
(10 .8) |
(9 .5) |
(8 .5) |
(42 .0) |
| Net working capital 2 |
(30.4) | (23.5) | (18.2) | (62.8) |
| Net invested capital |
881.8 | 1,754.7 | 2,497.1 | 3,442.0 |
| Shareholders' equity |
501.4 | 537.2 | 551.2 | 644.9 |
| 3 Funds and provisions |
31.7 | 136.2 | 185.4 | 238.2 |
| liabilities(1) 4 Deferred tax |
18.2 | 154.3 | 261.1 | 322.1 |
| Borrowings | 421.4 | 977.9 | 1,692.3 | 2,532.0 |
| Cash and cash equivalents |
(90 .9) |
(51 .0) |
(192 .9) |
(295 .2) |
| 5 Net financial position |
330.5 | 926.9 | 1,499.5 | 2,236.8 |
| Total sources |
881.8 | 1,754.7 | 2,497.1 | 3,442.0 |
| Net leverage (NFP/EBITDA) |
1.9x | 4.3x | 5.7x | 6.9x |
Trade payables as of December 2017 include ~ € 42m of "other payables to government agencies" (balances payable by Cellnex to the tax authorities), and ~ € 45m of "other payables", formed mainly of payables to non-current asset suppliers
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| 6. | Appendix | 45 |
Broadcast Telecom Other
25
Source: Capital IQ
EBITDA Margin '18E
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| 6. | Appendix | 45 |
In the 12 months prior to the Joint Bid Announcement, Cellnex's share price has significantly over performed the IBEX – 35 also backed by M&A/speculative rumors on Abertis (controlling shareholder)
Cellnex IBEX-35 (rebased)
Consideration (premium to Cellnex trading value) Cellnex Cellnex - Volume IBEX-35 (rebased)
Since March 2017, Cellnex's share price increased by approx. 54% from 15.01 €/share to 23.11 €/share, significantly outperforming its comparables
Widening gap between multiple and share price evolution, i.e. price increase mainly due to a multiple re-rating
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| Introduction | 34 | |
| Valuation Considerations | 37 | |
| 6. | Appendix | 45 |
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| Introduction | 34 | |
| Valuation Considerations | 37 | |
| 6. | Appendix | 45 |
| Method | Comments | Significance | |
|---|---|---|---|
| A | SHARE PRICE PERFORMANCE |
The share price performance is a useful benchmark as to how the market values Cellnex The analysis is based on share price taking into account the Atlantia Bid Announcement and the Joint Bid Announcement as reference dates The methodology is considered medium-high significant thanks to an adequate level of free float and a high level of liquidity of the share |
Medium - High |
| B | DCF | Valuation on public information, not including a disclosed business plan prepared by Cellnex's management – The discounted cash flow analysis ("DCF") has been performed on cash flows estimated through a broker consensus (i.e. 5 brokers' reports) The reports considered for the estimation of Cellnex's cash flow have been published after the release of 2017 annual results by Cellnex (i.e. February 16th , 2018) The unavailability of a business plan prepared by Cellnex's management limits the significance of the DCF method |
Medium |
| C | TRADING MULTIPLES |
Relevant panel of comparable companies in terms of size and business – EV/EBITDA multiple is the most appropriate and widely used indicator to measure companies operating in the tower industry Cellnex's EBITDA utilized for the calculation of Cellnex's enterprise value has been adjusted for non recurring items in order to make Cellnex's EBITDA comparable to its peers – Comparable have been divided between broadcasting and telecom panels and the resulting average multiples of the panels have been weighted for Cellnex revenues mix in order to calculate the enterprise value Differences of mix of business and geographic presence affect the significance of the method |
Medium |
| D | BROKERS' TARGET PRICES |
High coverage represented by a panel of 20 analysts that released a target price and a recommendation post publication 16th of 2017 results by Cellnex (i.e. February , 2018) Brokers estimate Cellnex's value mainly through a DCF methodology, but most brokers estimate target prices based on 1/1.5 years target, following significant activities by Cellnex |
Limited |
| E | TRANSACTION MULTIPLES |
Transactions occurred in the reference business are mainly asset deals (small groups of towers, local players, etc.), with limited comparability to the Transaction |
Not applied |
| F | PTO PREMIA | Due to the key features of the Transaction, involving a 29.9% stake (just below PTO threshold) not considered for the analysis |
Not applied |
35
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| Introduction | 34 | |
| Valuation Considerations | 37 | |
| 6. | Appendix | 45 |
Consideration Premium/(Discount)
38
| € | Min | Max |
|---|---|---|
| Equity value per share |
16.01 | 21.44 |
| Consideration | 21.50 |
Source: company data, Bloomberg as of March 13, 2018
| W. avg. 1M | W. avg. 3M | W. avg. 6M | W. avg. 12M | W. avg. 24M | W. since IPO (07/05/2015) | |
|---|---|---|---|---|---|---|
| Share price (€) | Max 16.08 |
15.29 | Min 14.39 |
14.53 | 15.00 | 15.01 |
| Consideration vs. ref. price (%) | 33.7% | 40.7% | 49.4% | 47.9% | 43.4% | 43.3% |
| € | Min | Max |
|---|---|---|
| Equity value per share |
14.39 | 16.08 |
| Consideration | 21.50 |
41
| Valuation parameters | Enterprise Value (€m) | Valuation range | ||
|---|---|---|---|---|
| Enterprise | FOCF t n TV t W t n |
WACC € ##### 5.86% 6.06% 6.26% 6.46% 6.66% |
Min | Max |
| value | t 1 1 WACC 1 WACC |
Equity value 1.90% 7,217 6,843 6,504 6,194 5,911 Rate |
per share 16.73 |
20.36 |
| 1.95% 7,305 6,922 6,575 6,259 5,970 wth Consideration 2.00% 7,395 7,003 6,648 6,325 6,030 |
per share | 21.50 | ||
| 2.05% 7,487 7,085 6,092 6,723 6,393 |
||||
| Terminal value |
FOCFn (1 g) TV WACC g |
Gro 7,581 7,170 6,799 6,462 6,154 2.10% |
||
| EV/EBITDA Adj. 2018E (x) | ||||
| WACC | ||||
| Value per | /-Other adj. W –NFP |
16.0 5.86% 6.06% 6.26% 6.46% 6.66% |
||
| share | VPS Number of shares |
1.90% 17.3x 16.4x 15.6x 14.9x 14.2x Rate |
||
| 1.95% 17.5x 15.8x 15.0x 14.3x 16.6x |
||||
| wth 17.8x 15.2x 14.5x 2.00% 16.8x 16.0x |
||||
| Valuation | Gro 2.05% 18.0x 17.0x 16.1x 15.4x 14.6x 2.10% 18.2x 17.2x 16.3x 15.5x 14.8x |
|||
| date | March 23rd, 2018 | Equity value (€m) | ||
| WACC 5.86% 6.06% 6.26% 6.46% 6.66% ##### |
||||
| WACC | 6.06% - 6.46% |
4,849 4,469 4,124 3,809 3,521 1.90% |
||
| Rate 1.95% 4,938 4,549 4,196 3,875 3,581 |
||||
| wth 2.00% 5,030 4,631 4,271 3,942 3,642 |
||||
| 2.05% 5,123 4,715 4,346 4,011 3,705 Gro |
||||
| Terminal | 2.10% 5,220 4,802 4,424 4,081 3,769 |
|||
| growth rate | 1.95% - 2.05% |
Equity value per share (€) | ||
| WACC | ||||
| 18.4 5.86% 6.06% 6.26% 6.46% 6.66% |
||||
| Financial projections |
2018 – 2022 |
1.90% 20.94 19.30 17.81 16.45 15.20 Rate |
||
| period | 1.95% 21.32 19.64 18.12 16.73 15.46 |
|||
| wth 2.00% 21.72 20.00 18.44 17.02 15.73 2.05% 22.12 20.36 18.77 17.32 16.00 |
||||
| Gro 2.10% 22.54 20.73 19.10 17.62 16.27 |
Note: for additional details on WACC please refers to appendix
| (1) Market cap. |
EV | NFP / |
Telecom | EV | / EBITDA |
/ EV |
(EBITDA | - Capex) | #Tower | EV / Tower |
|||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Company | Country | (EURm) | (EURm) | EBITDA 2018 |
exposure (%) | 2018E | 2019E | 2020E | 2018E | 2019E | 2020E | (EURk) | |
| Europe | |||||||||||||
| Infrastrutture Wireless Italiane S.p.A. |
IT | 3,558 | 3,606 | 0.2x | 100.0% | 16.9x | 15.4x | 14.4x | 17.4x | 15.7x | 14.8x | 11,000 | 328 |
| EI Towers S.p.A |
IT | 1,326 | 1,630 | 2.1x | 15.0% | 11.5x | 10.8x | 11.1x | 12.5x | 11.8x | 12.2x | 3,300 | 494 |
| Rai Way S.p.A. |
IT | 1,322 | 1,356 | 0.1x | 0.0% | 11.4x | 11.0x | 10.8x | 15.8x | 14.4x | 12.6x | 2,300 | 589 |
| Median | 11.5x | 11.0x | 11.1x | 15.8x | 14.4x | 12.6x | 494 | ||||||
| Average | 13.3x | 12.4x | 12.1x | 15.2x | 14.0x | 13.2x | 470 | ||||||
| US | |||||||||||||
| American Tower Corporation (REIT) |
US | 50,285 | 67,417 | 4.4x | 100.0% | 19.0x | 17.7x | 16.4x | 23.9x | 22.1x | 19.8x | 149,246 | 452 |
| Crown Castle International Corp. (REIT) |
US | 35,808 | 48,665 | 5.1x | 100.0% | 19.5x | 18.2x | 16.9x | 20.2x | 19.0x | 17.5x | 39,810 | 1,222 |
| SBA Communications Corporation |
US | 15,565 | 23,057 | 7.2x | 100.0% | 22.0x | 20.1x | 18.3x | 25.3x | 23.1x | 21.1x | 27,909 | 826 |
| Median | 19.5x | 18.2x | 16.9x | 23.9x | 22.1x | 19.8x | 826 | ||||||
| Average | 20.2x | 18.7x | 17.2x | 23.1x | 21.4x | 19.5x | 833 | ||||||
| LatAm | |||||||||||||
| Telesites, S.A.B. de C.V. |
MX | 2,042 | 3,012 | 5.4x | 100.0% | 16.7x | 14.9x | 12.8x | 25.3x | 21.7x | 17.8x | 15,334 | 196 |
| Median | 16.9x | 15.4x | 14.4x | 20.2x | 19.0x | 17.5x | 494 | ||||||
| Average | 16.7x | 15.4x | 14.4x | 20.1x | 18.3x | 16.5x | 587 | ||||||
| (2) Telecom Peers |
|||||||||||||
| Median | 19.2x | 17.9x | 16.6x | 22.1x | 20.5x | 18.7x | 639 | ||||||
| Average | 19.4x | 17.8x | 16.5x | 21.7x | 20.0x | 18.3x | 707 | ||||||
| (3) Broadcasting Peers |
|||||||||||||
| Median | 11.5x | 11.0x | 11.1x | 15.8x | 14.4x | 12.6x | 494 | ||||||
| Average | 13.2x | 12.3x | 11.6x | 17.9x | 16.0x | 14.2x | 427 | ||||||
| (@ Cellnex Consideration) |
SP | 4,979 | 7,427 | 5.4x | 70.0% | 17.8x | 16.2x | 14.9x | 24.1x | 22.4x | 21.0x | 27,167 | 273 |
Source: Bloomberg as of March 20, 2018, company data Notes: (1) 3M average market cap; (2) Including: Infrastrutture Wireless Italian S.p.A., American Tower Corporation (REIT), Crown Castel International Corp (REIT); SBA Communications Corporation; (3) Including: EI Towers S.p.A., Rai Way S.p.A., Telesites S.A.B. de C.V.
42
US Comps European Comps LatAm Comps Min Max Total Average
Medium
| Multiple Calculation |
||||||||
|---|---|---|---|---|---|---|---|---|
| 2018E | 2019E | |||||||
| EV/EBITDA Median - Telecom |
A | 19.2x | 17.9x | |||||
| Telecom weight |
B | 70.0% | 70.0% | |||||
| Weighted EV/EBITDA - Telecom |
C=A*B | 13.5x | 12.6x | |||||
| Median EV/EBITDA - Broadc |
D | 11.5x | 11.0x | |||||
| Broadcasting weight |
E | 30.0% | 30.0% | |||||
| EV/EBITDA Weighted - Broadc |
F=D*E | 3.4x | 3.3x | |||||
| EV/EBITDA Blended |
G=C+F | 16.9x | 15.9x | |||||
| Valuation range |
|||||||
|---|---|---|---|---|---|---|---|
| 2018E | 2019E | ||||||
| Median EV/EBITDA (x) |
G | 16.9x | 15.9x | ||||
| Adjusted EBITDA (€m) |
H | 416 | 459 | ||||
| (€m) Enterprise value |
I=G*H | 7,041 | 7,274 | ||||
| (€m) Bridge equity to |
J | (2 ,448) |
(2 ,448) |
||||
| Equity value (€m) |
K=I+J | 4,594 | 4,826 | ||||
| Nr . of shares (#m) |
L | 232 | 232 | ||||
| (€) Value per share |
M=K/L | 19.84 | 20.84 | ||||
| Min | Max |
| € | Min | Max |
|---|---|---|
| Equity value per share |
19.84 | 20.84 |
| Consideration per share |
21.50 |
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| 6. | Appendix | 45 |
| DCF Details | 46 | |
| WACC Details | 49 | |
| Trading Comparables Description | 51 | |
| Historical Trading Multiples | 56 | |
| Brokers' Target Prices | 60 | |
| Transaction Multiples | 65 | |
| Other Valuation Materials | 68 | |
| Examined Documentation | 70 |
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| 6. | Appendix | 45 |
| DCF Details | 46 | |
| WACC Details | 49 | |
| Trading Comparables Description | 51 | |
| Historical Trading Multiples | 56 | |
| Brokers' Target Prices | 60 | |
| Transaction Multiples | 65 | |
| Other Valuation Materials | 68 | |
| Examined Documentation | 70 |
| Broker consensus | |||||||
|---|---|---|---|---|---|---|---|
| €m | 2017A | 2018E | 2019E | 2020E | 2021E | 2022E | CAGR '18E-'22E |
| Revenues | 789.3 | 887.2 | 933.2 | 976.5 | 1,034.3 | 1,077.0 | 5.0% |
| Growth (%) | - | 12.4% | 5.2% | 4.6% | 5.9% | 4.1% | |
| EBITDA adj. | 354.5 | 416.3 | 458.6 | 498.2 | 540.0 | 577.0 | 8.5% |
| % on revenues | 44.9% | 46.9% | 49.1% | 51.0% | 52.2% | 53.6% | |
| (-) D&A | (225.4) | (268.8) | (274.8) | (267.4) | (292.5) | (287.5) | |
| EBIT adj. | 129.2 | 147.5 | 183.9 | 230.8 | 247.5 | 289.5 | (0.0%) |
| % on revenues | 16.4% | 16.6% | 19.7% | 23.6% | 23.9% | 26.9% | |
| Broker consensus | |||||||
| Broker consensus | |||||||
|---|---|---|---|---|---|---|---|
| €m | 2017A | 2018E | 2019E | 2020E | 2021E | 2022E | |
| Capex | (165.2) | (108.2) | (127.4) | (144.7) | (167.7) | (136.7) | |
| % on revenues | 20.9% | 12.2% | 13.7% | 14.8% | 16.2% | 12.7% | |
| Acquisitions | (806.8) | (279.4) | (167.6) | (153.9) | (125.0) | - | |
| % on revenues | 102.2% | 31.5% | 18.0% | 15.8% | 12.1% | - | |
| Delta net working capital | (1) - |
(0.6) | (0.6) | (0.4) | - | - | |
| % on revenues | - | 0.1% | 0.1% | 0.0% | - | - | |
| €m | 2017A | 2018E | 2019E | 2020E | 2021E | 2022E | Terminal Value |
|---|---|---|---|---|---|---|---|
| Revenues | 789.3 | 887.2 | 933.2 | 976.5 | 1,034.3 | 1,077.0 | 1,098.5 |
| Growth (%) |
- | 12.4% | 5.2% | 4.6% | 5.9% | 4.1% | 2.0% |
| EBITDA adj. |
354.5 | 416.3 | 458.6 | 498.2 | 540.0 | 577.0 | 588.5 |
| Margin (%) |
44.9% | 46.9% | 49.1% | 51.0% | 52.2% | 53.6% | 53.6% |
| (-) Taxes on EBIT adj. |
(36.8) | (42.0) | (52.4) | (65.8) | (70.5) | (82.5) | (134.7) |
| on EBIT adj. % |
(28.5%) | (28.5%) | (28.5%) | (28.5%) | (28.5%) | (28.5%) | (28.5%) |
| (-) Capex |
(165.2) | (108.2) | (127.4) | (144.7) | (167.7) | (136.7) | (116.0) |
| % on revenues |
20.9% | 12.2% | 13.7% | 14.8% | 16.2% | 12.7% | 10.6% |
| (-) Acquisitions |
(806.8) | (279.4) | (167.6) | (153.9) | (125.0) | - | - |
| % on revenues |
102.2% | 31.5% | 18.0% | 15.8% | 12.1% | - | - |
| (-)/+ Delta WC |
(2) - |
(0.6) | (0.6) | (0.4) | - | - | - |
| % on revenues |
- | (0.1%) | (0.1%) | (0.0%) | - | - | - |
| Unlevered FCF |
(654.3) | (14.0) | 110.6 | 133.4 | 176.8 | 357.8 | 337.9 |
| Discount factor |
97.0% | 91.3% | 85.9% | 80.8% | 76.1% | ||
| PV unlevered FCF |
(13.6) | 100.9 | 114.6 | 142.9 | 272.2 |
| Assumptions | (€m) |
|---|---|
| Valuation date |
23-Mar-18 |
| WACC (%) |
6.3% |
| Perpetuity growth (%) rate |
2.0% |
| Valuation | |
| PV - Unlevered cash flows |
617 |
| PV - Terminal value |
6,031 |
| Enterprise value |
6,648 |
| 23/03/18(1) Equity value @ |
4,271 |
|---|---|
| 23/03/18(1) (€) @ Price per share |
18.44 |
Note: (1) Capitalized at cost of equity (7.43%) to March 23th , 2018; (2) Computed based on a definition of net working capital consistent with broker reports used as reference for DCF valuation Source: broker reports
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| 6. | Appendix | 45 |
| DCF Details | 46 | |
| WACC Details | 49 | |
| Trading Comparables Description | 51 | |
| Historical Trading Multiples | 56 | |
| Brokers' Target Prices | 60 | |
| Transaction Multiples | 65 | |
| Other Valuation Materials | 68 | |
| Examined Documentation | 70 |
6. Weighted average for Ebitda contibution of each country to Cellnex's Ebitda of marginal tax rate of Spain, France and Italy and into force from January 1, 2018 (source: KPMG and public data) Source: Capital IQ Bloomberg, Annual Reports
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| 6. | Appendix | 45 |
| DCF Details | 46 | |
| WACC Details | 49 | |
| Trading Comparables Description | 51 | |
| Historical Trading Multiples | 56 | |
| Brokers' Target Prices | 60 | |
| Transaction Multiples | 65 | |
| Other Valuation Materials | 68 | |
| Examined Documentation | 70 |
| Company | Description | Main shareholders |
% | Key financials (m) |
|
|---|---|---|---|---|---|
| 3Q 2017 (LTM) |
|||||
| Infrastrutture | (Italy), Infrastrutture g Founded in 2015 and headquartered in Milan |
g Telecom Italia |
60% | g Revenues | € 346 |
| Wireless Italiane |
Group Wireless Italiane is the company of the Telecom Italia that |
g Free Float |
40% | g EBITDA | € 181 |
| operates in Italy in the field of electronic communications infrastructure |
g Capex | € 43 |
|||
| g It offers integrated hosting and management and maintenance services |
g EBITDA - Capex |
€ 138 |
|||
| development of new sites and turnkey services for the planning and |
g Net Debt |
€ 63 |
|||
| Cap(1): € Mkt 3.56bn |
creation of radio networks |
g Net Debt/EBITDA (x) |
0.3x | ||
| g The company manages approximately sites 11,000 |
|||||
| 3Q (LTM) 2017 |
|||||
| EI Towers |
g Founded in and headquartered in Lissone (Italy), EI Towers 1999 |
g Mediaset Group |
40% | g Revenues | € 262 |
| is engaged in the operation of infrastructures used in radio and television |
g Free Float |
60% | g EBITDA | € 130 |
|
| broadcasting and in delivering telecommunications services |
g Capex | € 26 |
|||
| offers infrastructure for g It network and integrated services electronic |
- Capex g EBITDA |
€ 103 |
|||
| comunications and various services of hosting and maintenance |
g Net Debt |
€ 298 |
|||
| Cap(1): Mkt € 1.33bn |
g It manages a portfolio of approximately 3,300 sites, a |
g Net Debt/EBITDA (x) |
2.3x | ||
| fiber optic network of c. 6,000 km and a satellite infrastructure |
|||||
| 3Q 2017 (LTM) |
|||||
| Rai Way |
g Founded in 1999 by Rai Radiotelevisione Italiana and |
g Rai | 65% | g Revenues | € 216 |
| headquartered in Rome (Italy), Rai Way owns and manages television |
g Free Float |
35% | g EBITDA | € 110 |
|
| and radio transmission and broadcasting networks in Italy |
g Capex | € 25 |
|||
| g It offers terrestrial and satellite transmissions of televisions and radio |
g EBITDA - Capex |
€ 85 |
|||
| signals, tower rental services and network services |
g Net Debt |
€ 16 |
|||
| Cap(1): Mkt € 1.32bn |
g It operates and manages c. 2,300 sites |
Debt/EBITDA (x) g Net |
0.1x |
| Company | Description | Main shareholders |
% | Key financials (m) |
||
|---|---|---|---|---|---|---|
| FY 2017 |
||||||
| American Tower |
g Founded in and headquartered in Boston (U.S.), American 1995 |
g Vanguard | 7% | g Revenues | € 5,909 |
|
| of Tower is a leading independent owner, operator and developer |
g BlackRock | 6% | g EBITDA | € 3,294 |
||
| wireless and broadcast communications real estate |
g Wellington Management |
5% | g Capex | € 713 |
||
| g It provides customized collocation solutions through in-building |
g State Street |
4% | - Capex g EBITDA |
€ 2,581 |
||
| systems, outdoor distributed antenna systems and services |
g T Rowe Price Associates |
4% | g Net Debt |
€ 17,205 |
||
| Cap(1): Mkt € 50.29bn |
that speed network deployment |
g Free Float |
74% | g Net Debt/EBITDA (x) |
5.2x | |
| g It has a portfolio of over 150,000 communications sites |
||||||
| FY 2017 |
||||||
| Crown Castle |
g Founded in 1994 and headquartered in Houston (U.S.), Crown Castle |
g Capital Group |
10% | g Revenues | € 3,862 |
|
| is engaged in the telecommunication infrastructure industry |
g BlackRock | 7% | g EBITDA | € 2,027 |
||
| g It offers cells and fiber solutions for the U.S. market |
g T Rowe Price |
7% | g Capex | € 75 |
||
| g It owns, operates and leases more than cell towers and 40,000 |
g Vanguard | 7% | g EBITDA - Capex |
€ 1,952 |
||
| route miles of fiber approx. 60,000 |
g State Steet |
4% | g Net Debt |
€ 14,050 |
||
| Cap(1): Mkt € 35.81bn |
g Free Float |
66% | Debt/EBITDA (x) g Net |
6.9x | ||
| FY 2017 |
||||||
| SBA Communications |
(U.S.), SBA g Founded in 1989 and headquartered in Boca Raton |
g Vanguard | 11% | g Revenues | € 1,532 |
|
| Communications is a leading provider, owner and operator of |
g BlackRock | 7% | g EBITDA | € 977 |
||
| wireless communications infrastructures in America |
g Principal Financial Group |
5% | g Capex | € 130 |
||
| g It manages more than 27,909 sites and is among one of the top 20 Real |
g State Street |
4% | g EBITDA - Capex |
€ 846 |
||
| Estate Investment Trusts (REIT) based on market capitalization |
g Brown Advisory |
2% | g Net Debt |
€ 8,195 |
||
| Cap(1): € Mkt 15.66bn |
g Free Float |
71% | g Net Debt/EBITDA (x) |
8.4x |
| Company | Description | Main shareholders |
% | Key financials (m) |
|
|---|---|---|---|---|---|
| 3Q (LTM) 2017 |
|||||
| Telesites | g Founded in 2015 and headquartered in Mexico City (Mexico), |
g Operadora Inbursa |
2% | g Revenues | € 266 |
| Telesites engages in the telecommunications infrastructure sector |
g Vanguard | 1% | g EBITDA | € 154 |
|
| g It builds, installs, maintains, operates and sells various types of |
g BlackRock | 1% | g Capex | € 87 |
|
| passive telecommunications infrastructure |
g British Columbia Investments |
1% | g EBITDA - Capex |
€ 66 |
|
| g It owns and manages over 15,000 towers |
g Sun Life Financial |
0% | g Net Debt |
€ 1,049 |
|
| Cap(1): Mkt € 2.04bn |
g Telesites is the largest tower operator in Mexico and the second |
g Free Float |
95% | g Net Debt/EBITDA (x) |
6.8x |
| largest in Latin America |
| CAGR (18-20) (%) |
EBITDA Margin (%) |
- Capex) Sales (EBITDA as % of (%) |
|||||||
|---|---|---|---|---|---|---|---|---|---|
| Company | Country | Sales | EBITDA | 2018E | 2019E | 2020E | 2018 | 2019 | 2020 |
| Europe | |||||||||
| Infrastrutture Wireless Italiane S.p.A. |
IT | 5.4% | 8.3% | 56.5% | 58.7% | 59.6% | 55.0% | 57.3% | 58.3% |
| EI Towers S.p.A |
IT | 2.5% | 1.6% | 50.7% | 51.0% | 49.8% | 46.5% | 46.7% | 45.6% |
| Rai Way S.p.A. |
IT | 2.1% | 3.1% | 53.6% | 54.5% | 54.7% | 38.9% | 41.6% | 46.7% |
| Median | 2.5% | 3.1% | 53.6% | 54.5% | 54.7% | 46.5% | 46.7% | 46.7% | |
| Average | 3.3% | 4.3% | 53.6% | 54.7% | 54.7% | 46.8% | 48.5% | 50.2% | |
| US | |||||||||
| American Tower Corporation (REIT) |
US | 6.4% | 7.7% | 60.9% | 61.3% | 62.4% | 48.4% | 49.1% | 51.6% |
| Crown Castle International Corp. (REIT) |
US | 6.6% | 7.4% | 57.8% | 58.2% | 58.7% | 55.6% | 55.8% | 56.4% |
| SBA Communications Corporation |
US | 7.9% | 9.6% | 69.4% | 70.7% | 71.6% | 60.3% | 61.4% | 62.2% |
| Median | 6.6% | 7.7% | 60.9% | 61.3% | 62.4% | 55.6% | 55.8% | 56.4% | |
| Average | 7.0% | 8.2% | 62.7% | 63.4% | 64.2% | 54.8% | 55.5% | 56.8% | |
| LatAm | |||||||||
| Telesites, S.A.B. de C.V. |
MX | 13.9% | 14.1% | 64.1% | 63.4% | 64.4% | 42.3% | 43.7% | 46.4% |
| Median | 6.4% | 7.7% | 57.8% | 58.7% | 59.6% | 48.4% | 49.1% | 51.6% | |
| Average | 6.4% | 7.4% | 59.0% | 59.7% | 60.2% | 49.6% | 50.8% | 52.5% | |
| Telecom Peers |
|||||||||
| Median | 6.5% | 8.0% | 59.4% | 60.0% | 61.0% | 55.3% | 56.5% | 57.4% | |
| Average | 6.6% | 8.3% | 61.1% | 62.2% | 63.1% | 54.8% | 55.9% | 57.2% | |
| Broadcasting Peers |
|||||||||
| Median | 2.5% | 3.1% | 53.6% | 54.5% | 54.7% | 42.3% | 43.7% | 46.4% | |
| Average | 6.2% | 6.3% | 56.2% | 56.3% | 56.3% | 42.6% | 44.0% | 46.2% | |
| Cellnex | SP | 4.9% | 9.4% | 46.9% | 49.1% | 51.0% | 34.7% | 35.5% | 36.2% |
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| 6. | Appendix | 45 |
| DCF Details | 46 | |
| WACC Details | 49 | |
| Trading Comparables Description | 51 | |
| Historical Trading Multiples | 56 | |
| Brokers' Target Prices | 60 | |
| Transaction Multiples | 65 | |
| Other Valuation Materials | 68 | |
| Examined Documentation | 70 |
Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18
EV/EBITDA NTM Min Max
57
7.0x
US Peers – Average EV/EBITDA NTM Evolution
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| 6. | Appendix | 45 |
| DCF Details | 46 | |
| WACC Details | 49 | |
| Trading Comparables Description | 51 | |
| Historical Trading Multiples | 56 | |
| Brokers' Target Prices | 60 | |
| Transaction Multiples | 65 | |
| Other Valuation Materials | 68 | |
| Examined Documentation | 70 |
Source: Company data, Bloomberg, Broker reports
| Bank | Date | Valuation Method | Selected Brokers Quotes |
|---|---|---|---|
| March 16, 2018 | n.a. | DCF-based valuation, assuming long-term growth of 2.5% | |
| March 16, 2018 | n.a. | and a WACC of 6.3% = €26. We assume. Cellnex deploys €500m of its €1bn M&A firepower next year (levering .up to |
|
| March 15, 2018 | n.a. | 6.5x Net debt/EBITDA) with a 7% unlevered IRR = €2. | |
| March 15, 2018 | DCF (WACC @ 6.0%) at December 2018 | Morgan Stanley (March 1, 2018) | |
| March 12, 2018 | n.a. | ||
| March 06, 2018 | DCF (WACC @ 7.0%) at December 2019 | ||
| March 02, 2018 | DCF (WACC @ 6.0%) and SOTP(1) at December 2019 | We use a discounted cash flow (DCF) to arrive at our ex dividend valuation. We use weighted average cost of |
|
| March 01, 2018 | DCF (WACC @ 6.3%) at November 2018 | capital of 7.0% and a perpetual growth rate of 2.5%. Recent acquisitions drive long-term growth and the implied |
|
| March 01, 2018 | n.a. | return to our price target supports our Outperform rating. We have rolled our DCF to end 2019. |
|
| February 20, 2018 | DCF (WACC @ 6.5%) at December 2018 | ||
| February 19, 2018 | n.a. | RBC (March 6, 2018) | |
| February 19, 2018 | n.a. | ||
| February 19, 2018 | n.a. | ||
| February 19, 2018 | n.a. | The defensive nature of the Tower sub-sector and healthy | |
| February 16, 2018 | DCF (WACC 4.5%-6.7%) at December 2018 | visibility of future revenue streams leads us to view the risk associated with an equity investment as lower than a telco. |
|
| February 16, 2018 | DCF (WACC @ 5.1%) and SOTP(1) at December 2018 | This supports a lower WACC given the higher debt | |
| February 16, 2018 | n.a. | weighting vs. telcos where leverage is c2x. We use a WACC of 6.5% and terminal growth rate of 1.5% in our |
|
| February 16, 2018 |
n.a. | base case which derives our fair value. | |
| February 16, 2018 | n.a. | Deutsche Bank (February 20, 2018) | |
| February 16, 2018 | n.a. |
Share Price vs. Target Price Evolution
| Broker | Date | Eq Value (€m) Abertis to |
Stake | Total Eq Value (€m) |
Shares (#m) Outstanding |
Value/share (€) Eq |
Valuation Methodology |
|---|---|---|---|---|---|---|---|
| RBC | 19/02/2018 | 1 634 , |
34 0% |
4 806 , |
231 6 |
20 8 |
n.a. |
| Sabadell | 19/05/2017 | 1 339 , |
34 0% |
3 938 , |
231 6 |
17 0 |
Market Value |
| Societe Generale |
26/04/2017 | 1 260 , |
34 0% |
3 706 , |
231 6 |
16 0 |
Market Price |
| UBS | 05/04/2017 | 1 197 , |
34 0% |
3 521 , |
231 6 |
15 2 |
Market Value |
| Deutsche Bank |
30/03/2017 | 1 198 , |
34 0% |
3 524 , |
231 6 |
15 2 |
Market Value |
| Raymond James |
23/03/2017 | 1 235 , |
34 0% |
3 632 , |
231 6 |
15 7 |
Market Value |
| Average | 1 311 , |
3 855 , |
16 6 |
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| 6. | Appendix | 45 |
| DCF Details | 46 | |
| WACC Details | 49 | |
| Trading Comparables Description | 51 | |
| Historical Trading Multiples | 56 | |
| Brokers' Target Prices | 60 | |
| Transaction Multiples | 65 | |
| Other Valuation Materials | 68 | |
| Examined Documentation | 70 |
| Date | Target | Country | Business Overview |
Acquirer | Towers acquired (#) |
EV (€ m) |
Implied (€ k) x tower |
Implied x EBITDA |
|---|---|---|---|---|---|---|---|---|
| May-17 | Swiss Towers |
Switzerland | Operator of 2,239 telecommunication site Switzerland |
Cellnex, Swiss Life Asset Managers and Deutsche Capital Telekom Partners |
2,239 | 430 | 192.1 | 11.6x |
| Feb-17 | Bouygues | France | Bouygues' portfolio of existing sites located in France 1,800 |
Cellnex | 1,800 | 500 | 277.8 | n.a. |
| Dec-16 | FPS Towers |
France | Owner and operator of nearly 2,500 wireless tower sites in France |
Corp., American Tower PGGM |
2,500 | 727 | 290.9 | n.a. |
| Sep-16 | Shere Group |
Netherlands, UK |
Operator of 464 sites in the Netherlands and 540 sites in the UK |
Cellnex | 1,004 | 393 | 391.4 | n.a. |
| Apr-16 | Telefonica Deutschland |
Germany | tower infrastructure portfolio (2,350 towers) Passive |
(Telefonica SA) Telxius |
2,350 | 587 | 249.8 | n.a. |
| Apr-16 | Tower Development Corp. |
USA and Puerto Rico |
Portfolio company of Berkshire Partners, owning and operating towers in the U.S. and Puerto Rico 336 |
Crown Castle |
336 | 405 | 1,205.8 | n.a. |
| Apr-16 | Wireless Infrastructure Group |
Scotland | Independent communications infrastructure provider |
3i Infrastructure |
2,000 | 372 | 186.2 | n.a. |
| Oct-15 | Viom Network |
India | 42,200 wireless communications towers and 200 indoor distributed antenna systems across India |
Corp. American Tower |
42,200 | 2,807 | 66.5 | n.a. |
| Oct-15 | China Mobile, China China Telecom and Unicom |
China | Wireless tower assets of China Mobile Limited, China Corporation China Telecom Limited and Unicom |
China Company Tower |
1,500,000 | 29,619 | 19.7 | n.a. |
| May-15 | CCAL | Australia | Crown Castle's Australian subsidiary |
Macquarie infrastructure |
1,700 | 1,420 | 835.4 | n.a. |
| Mar-15 | Galata | Italy | Portfolio of 7,377 mobile phone towers in Italy |
Cellnex | 7,377 | 770 | 104.4 | n.a. |
| Feb-15 | Verizon | USA | 11,324 wireless communications towers and 165 additional towers owned by Verizon |
Corp. American Tower |
11,489 | 4,415 | 384.3 | n.a. |
| Nov-14 | Bharti Airtel |
Nigeria | Portfolio of Airtel's communications towers in Nigeria |
American Tower Corp. |
4,800 | 847 | 176.5 | 16.7x |
| Nov-14 | TIM Brazil |
Brazil | TIM tower portfolio in Brazil |
Corp. American Tower |
6,480 | 929 | 143.3 | n.a. |
| Sep-14 | MTN | Nigeria | MTN's towers business, comprised of of MTN's 9,151 mobile network towers in Nigeria |
IHS | 9,151 | 1,446 | 158.0 | n.a. |
| Jun-14 | Oi SA |
Brazil | Portfolio of 1,641 wireless sites in Brazil |
SBA Communications |
1,641 | 387 | 235.7 | n.a. |
| Jun-14 | BR Towers |
Brazil | Brazilian telecommunications real estate company owning approx. 2,530 towers (exclusive use rights for approx. 2,110 at closing) additional towers in Brazil |
American Tower Corp. |
4,640 | 722 | 155.5 | n.a. |
| Date | Target | Country | Business Overview |
Acquirer | Towers acquired (#) |
EV (€ m) |
Implied (€ k) x tower |
Implied x EBITDA |
|---|---|---|---|---|---|---|---|---|
| Dec-13 | Oi SA |
Brazil | Portfolio of wireless sites in Brazil 2,007 |
SBA Communications |
2,007 | 476 | 237.1 | n.a. |
| Oct-13 | AT&T | USA | Portfolio of towers owned by AT&T 9,700 |
Crown Castle |
9,700 | 3,543 | 365.3 | n.a. |
| Sep-13 | Global Tower Partners |
USA | Portfolio of 5,400 domestic towers, 800 property interests under third party communications sites, over 9,000 domestic managed sites and approximately 500 towers in Costa Rica |
American Tower Corp. |
5,900 | 3,644 | 617.7 | n.a. |
| Aug-13 | NII Holdings |
Brazil and Mexico |
Portfolio of 2,790 towers in Brazil and 1,666 towers in Mexico |
American Tower Corp. |
4,456 | 607 | 136.2 | n.a. |
| Aug-13 | Telefonica/Yoigo | Spain | Portfoio of mobile-phone towers owned by telephone operators Telefonica and Yoigo |
Abertis | 4,227 | 385 | 91.1 | 6.4x |
| Nov-12 | Koninklijke KPN |
Germany | German Tower assets owned by KPN's subsidiary E-Plus |
Corp. American Tower |
2,000 | 393 | 196.5 | n.a. |
| Sep-12 | T-Mobile | USA | Portfolio of tower assets owned by T-Mobile, with 83% of the towers in US markets and in US top 100 72% top 50 markets |
Crown Castle |
7,180 | 1,863 | 259.5 | n.a. |
| Jun-12 | TowerCo | USA and Puerto Rico |
Tower sites in states across the USA and Puerto Rico, 47 owned by certain affiliates of TowerCo |
SBA Communications |
3,252 | 1,159 | 356.4 | n.a. |
| Feb-12 | Mobilitie | USA Central and America |
USA Central Tower sites in the and America and certain indoor and outdoor distributed antenna system assets in Chicago, Las Vegas, New York City and Alabama |
SBA Communications |
2,300 | 826 | 359.2 | n.a. |
| Feb-12 | Indosat | Indonesia | Sale and leaseback of 2,500 towers, approximately 25% of the Company's existing tower assets |
Tower Bersama |
2,500 | 394 | 157.8 | n.a. |
| Nov-11 | Telefonica (Mexico) |
Mexico | Towers owned by Telefonica's Mexican subsidiary Pegaso PCS |
American Tower Corp. |
2,138 | 279 | 130.6 | n.a. |
| Min | 19.7 | 6.4x | ||||||
| Average | 285.0 | 11.6x | ||||||
| Median | 216.1 | 11.6x | ||||||
| Max | 1,205.8 | 16.7x |
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| 6. | Appendix | 45 |
| DCF Details | 46 | |
| WACC Details | 49 | |
| Trading Comparables Description | 51 | |
| Historical Trading Multiples | 56 | |
| Brokers' Target Prices | 60 | |
| Transaction Multiples | 65 | |
| Other Valuation Materials | 68 | |
| Examined Documentation | 70 |
| Methodology | Comments | |
|---|---|---|
| A | SHARE PRICE PERFORMANCE |
The stock market price methodology consists of assigning a company a value equal to that attributed by the market on which its shares are traded, assuming the efficiency of the market and the significance of the prices quoted on it for the company's shares The main requirements for the use of this methodology are the existence of a significant float, as well as of volumes traded daily on the market The analysis is carried out through the collection of daily and average prices at different time horizons |
| B | DCF | DCF methodology for airport operators assumes the enterprise value of a company to be built by summing up - the discounted cash flows generated by the operating activity over a selected time horizon, calculated as EBIT, minus unlevered taxes, plus D&As and net of change in working capital and capital expenditures; and - the present value of the expected operating cash flow generated in the long run as a steady state approach |
| C | TRADING MULTIPLES |
Trading multiples methodology is based on the analysis of stock market prices and the respective multiples for a sample of companies deemed to be comparable to those being valued To apply this methodology, a series of ratios of "multiples" between share prices of comparable listed companies (numerator) and selected financial parameters of these companies (denominator) are calculated. The average / median ratio thus obtained are then applied on a consistent basis to selected parameters for the company being valued |
| D | BROKERS' TARGET PRICES |
The target price methodology is the analysis of the target prices indicated by the brokers that follow the company The target prices are selected excluding those following extraordinary events, and the median or average is calculated in order to derive an equity value of the company This methodology provides an indication of the market expectations on the stock in the short-medium term |
| E | TRANSACTION MULTIPLES |
The transaction multiples methodology is based on the analysis of prices paid and the respective multiples within a sample of target companies of an acquisition To apply this methodology, a series of ratios of "multiples" between prices paid (numerator) and selected financial parameters of these companies (denominator) are calculated. The resulting average / median ratios thus obtained are then applied on a consistent basis to specific variables for the company being valued. One of the main assumptions behind this methodology is the affinity in operational and financial terms between the company being valued and the companies belonging to the selected panel |
| F | PTO PREMIA | The public tender offer premia methodology is the analysis of premia paid historically in occasion of tender offers that have similar characteristics Premia are applied to the market prices before the announcement of the tender offer (considered the last undisturbed trading day before initial speculation of a possible acquisition) |
| Page | ||
|---|---|---|
| 1. | Background and Offer Overview | 6 |
| 2. | Cellnex at a Glance | 12 |
| 3. | Cellnex vs. Selected Peers | 22 |
| 4. | Cellnex Market Analysis | 27 |
| 5. | Valuation Considerations on Cellnex | 33 |
| 6. | Appendix | 45 |
| DCF Details | 46 | |
| WACC Details | 49 | |
| Trading Comparables Description | 51 | |
| Historical Trading Multiples | 56 | |
| Brokers' Target Prices | 60 | |
| Transaction Multiples | 65 | |
| Other Valuation Materials | 68 | |
| Examined Documentation | 70 |
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