Report
Acciona SA
vda. de Europa
18. Parque Empresarial La Moraleja
Phone: +34 916632850p:+34 916632850 ALCOBENDAS, MAD  28108  Spain Ticker: ANAANA

The greenest Acciona comes with a hey discount per family


Clan meetings can be full of tension. Acciona shareholders should know this. The infrastructure group of 7,300 million euros wants to break up its relics of renewable energy, which bankers estimate will be worth more than the family business that controls it. Investors aren't excited yet.

The planned IPO of Acciona's wind and solar energy business - which accounted for approximately three quarters of the group's EBITDA last year - comes at a delicate time. The green bubble has deflated a bit, and the iShares Global Clean Energy exchange-traded fund is down about a third from its January high.

This has not discouraged the Entrecanales family, whose members run the business and have a majority stake in Acciona through two investment vehicles. The sale of a 25% stake in Acciona Energía - as the scion is known - would allow Acciona to write off a net debt of more than 4 times the expected EBITDA for 2021.

It should also give the unit more freedom to pursue the near doubling of its energy capacity to 20 gigawatts by 2025. Acciona Energía could use its shares to buy rivals and make its target of 31 GW by 2030 easier to reach.
That potential is not yet in acciona's share price. At a multiple of 15 times the estimated EBITDA for 2021, similar to that of the Portuguese EDP Renovaveis (EDPR), the unit would reach 14,500 million euros, including debt. This compares to Acciona's current value of around 13,500 million euros, implying that investors attribute a negative value to its other construction and infrastructure assets.

One of the main reasons is that, after the disintegration, the Entrecanales clan will continue to control Acciona Energía, since Acciona intends to maintain a majority stake. But investors are applying a fairly strong dominant shareholder discount.
Let's imagine that acciona's infrastructure part trades at 8 times ebitda, less than the French rival Vinci, which does it at 10 times: it would be worth 2,000 million euros. If combined with Acciona Energía and the group's net debt is cut, amounting to 5,800 million, an overall equity value of 11,000 million is obtained, 51% above acciona's current market capitalization.

Considering that its green peers EDPR and Denmark's Orsted also have controlling shareholders, Acciona's investors could be more positive.

The authors are Reuters Breakingviews columnists. The opinions are yours. The translation, by Carlos Gómez Abajo, is the responsibility of CincoDías

Related Businesses
- - Customer
Copyright © 2024 by CreditRiskMonitor.com (Ticker: CRMZ®). All rights reserved.  You are not permitted to use this report or the information contained herein for any purpose not expressly permitted by CreditRiskMonitor.com, Inc. Except as expressly permitted by CreditRiskMonitor.com, Inc., you are not permitted, in whole or in part, to copy, alter, correct, adapt, translate, enhance, lease, sell, sublicense, assign, distribute, publish, otherwise make available to any third party, or prepare derivative works or improvements of this report or any of the information contained therein. You are not permitted to reverse engineer, disassemble, decompile, decode, or adapt the software, algorithms or other processes used to prepare this report, or otherwise attempt to derive or gain access to the source code of same. You agree not to remove, alter, obscure, combine or otherwise change any disclaimers, trademarks, copyrights, other intellectual property rights, proprietary rights, or other symbols, notices, marks, or serial numbers on or relating to any copy of the report or on marketing or other materials that CreditRiskMonitor.com, Inc. may provide to you. You will not use this report in any manner or for any purpose that infringes, misappropriates, or otherwise violates any right of any party, or that violates any applicable law.  
The FRISK® scores, agency ratings, credit limit recommendations and other scores, analysis and commentary are opinions of CreditRiskMonitor.com, Inc. and/or its suppliers, not statements of fact, and should be one of several factors in making credit decisions.  Any reliance you place on the information in this report is strictly at your own risk. Except as expressly provided by CreditRiskMonitor.com, Inc., no warranties or representations of any type, including without limitation of results to be obtained, merchantability or fitness for a particular purpose, are made concerning any part of CreditRiskMonitor.com, Inc.’s service, including without limitation the FRISK® scores.  The information published above has been obtained from sources CreditRiskMonitor considers to be reliable.  CreditRiskMonitor.com, Inc. and its third-party suppliers do not guarantee or validate the accuracy and completeness of the information provided in this report, the underlying information input to create the FRISK® scores, and specifically do not assume responsibility for not reporting any information omitted or withheld.  By using this website, you accept the Terms of Use Agreement. 
Contact Us: 845.230.3000
Fundamental financial data concerning public companies may be provided by Refinitiv (click for restrictions)
Thursday, April 25, 2024