Bonduelle jumps on planned sale of part of American unit

Bonduelle SA

25/05/2022 09:27

** Shares in Bonduelle  BOND.PA  jump 5% after the company
started talks to sell part of Bonduelle Americas Long Life, a
unit engaged in the processing and marketing of canned and
frozen vegetables in the U.S. and Canada  urn:newsml:reuters.com:*:nASM000D3L
    ** The French plant-based food company said on Tuesday it
entered into exclusive negotiations with Fonds De Solidarite FTQ
and CDPQ for the disposal of 65% of Bonduelle Americas Long Life
    ** The deal is based on a 100% enterprise value of C$850
million (about EUR 625 million), the company said in a statement
    ** Oddo BHF's analyst Fatma Agnès Hamdani sees a dilutive
impact of almost 23% on EPS on a first reading following this
partial sale, which as she says "is a lot but less than a total
cession" 
    ** Hamdani notes there is lack of details on what Bonduelle
could do with the sale proceeds, but adds she thinks the group
will make sure to mitigate the dilutive impact
    ** "Bonduelle's implicit valuation drops following this
exit, which could attract investors in the current context," she
adds
    ** Including today's move, the stock is down 20.9%
year-to-date


 (Reporting by Clement Martinot)
 ((Clement.martinot@tr.com))