The price of Siemens Gamesa Renewable Energy has rebounded by 6.24% on Monday, the first trading day after Siemens Energy made a voluntary buyover bid (OPA), in cash on 32.9 %. This was for an amount greater that 4,000 million euros.
SGRE recorded the highest increase (6.24%), of the Spanish selective this Tuesday and closed the day at 17.79 Euros per share, compared with 16.745 Friday.
Siemens Energy proposes a voluntary bid to take over 32.9% of SGRE, at a price per share of 18.05 euros and without conditions.
According to Sabadell analysts, the price represents a premium of 7.5% over last Friday’s settlement. It also “is in line” with the average price for the past six months (18.01 euros each share).
The offered price is higher than 16 Euros per share. This is where we place our valuation for SGRE (18.2 Euros per share is the average from the ‘factset consensus) after the most recent events (profit warning and suspension of long-term’ guidance ‘)”, according to analysts of the financial institution.
They also maintained the target price for Siemens Gamesa at 18.05 Euros and changed their recommendation to accept (as opposed to their previous recommendation of selling).
The entity’s value is determined by whether the offer has been accepted. We don’t expect the acceptance period to end once the National Securities Market Commission, (CNMV) approves it.
Sabadell analysts also predict that there will not be any type of competitor offer. They believe that one reason why the price could go up during acceptance is because Siemens Energy “considers that it appropriate to raise it in order to maximize acceptance.”
This could also be because “you need it for the CNMV [to declare it fair], although Sabadell sees this scenario as less likely. SIEMENS GAMESA – SHORT POSITIONS
According to information from the National Securities Market Commission, (CNMV), there is only one short position ‘alive and greater than 0.5% capital of Siemens Gamesa. It is the investment fund AQR Kapital Management. This fund has approximately 3.4million titles (0.5%).
This short position has been open by the fund since May 6, when Siemens Gamesa shares were listed on the Ibex35 at 13.945 euro per share. The fund’s value was then approximately 47.5 million euros.
This Monday, the price of Siemens Gamesa shares closed at 17.79 euros (27.57% from last May 6). The titles that AQR Capital owns in short amount for approximately 60.49million euros. That’s almost 13 million more euros than last May 6.
Short positions are financial operations that allow for the share’s value to decline in order to make profits.
