ACS has received a non-binding offer from the French group Vinci to acquire the industrial division of the Spanish group (Cobra), whose head is ACS Servicios Comunicaciones y Energía, and which, based on it, yields a company value of around 5,200 million euros, according to EFE.
ACS soars 13% in the Stock Market due to the possible sale of its industrial division
After this announcement, ACS shares recorded the highest rise in the IBEX 35 with an advance of more than 9% to 20.3 euros. However, so far this year, the company’s securities have lost about 38% of their value.
Specifically, from the amount deducted from Vinci’s proposal -which has been examined by the ACS board of directors- 2,800 million would be paid at least in cash and the difference may be paid in Vinci shares or in cash, as indicated the group chaired by Florentino Pérez at the National Securities Market Commission (CNMV).
The operation would include, in addition to engineering and works activities, participation in eight concessions and projects, mainly energy, as well as the platform for the development of new projects in the renewable energy sector, activities that represented a turnover in 2019 close to 6,300 million euros.
The closing of the operation, advanced by the newspaper Cinco Días, is subject to a review process (due diligence) that will be carried out in the coming months.
This process will include the examination of the actions necessary for the segregation of the activities that would not be sold to Vinci, among which are Zero-E (a company created last year and which concentrates the portfolio of renewable assets of the group) and 15 concessions .
In fact, before the pandemic, ACS’s plans were to close the sale of Zero-E’s portfolio of renewable assets, in whole or in packages, between the end of 2019 or the beginning of 2020.
Likewise, the sale to Vinci will be subject to the necessary regulatory authorizations, particularly in competition matters. The definitive terms of this operation will be agreed upon in the appropriate contract at the end of the review process.
The Industrial Services area of the ACS group is one of the main international players in the field of applied industrial engineering, with projects in more than 60 countries.
Within ACS’s industrial business, made up of several companies, Cobra stands out with special relevance, which at the end of 2019 had sales of 4,205 million euros, 66% from the international area.
The company, with more than 75 years of experience in all fields related to engineering, installation and industrial maintenance of infrastructures, has 36,068 employees (60% working outside of Spain), a portfolio of 6,147 million at the end of the last year -82% international- and presence in more than 60 countries.
Founded in 1944, Cobra made the international leap in 1978, and by business area, America is by far the first country in terms of revenue volume with 2,323 million and Spain the second with 1,413 million. Next came the rest of Europe, which accounted for revenues of 282 million in 2019, Africa with 94 million and Asia Pacific with 93 million.
The company provides services in different business areas: electrical networks, gas, water, communications, auxiliary services, industrial assemblies, railway installations, infrastructure management, maintenance, oil & gas or environmental projects.
Recently, in mid-September, ACS closed the sale to Galp of 75% of the capital of the company that concentrates its stakes in photovoltaic energy projects in Spain. By virtue of this operation, the Portuguese oil company makes a disbursement of 325.5 million euros, although the operation will report a benefit of 330 million to ACS for the value of the company (which includes debt).