D'Ieteren's drops as extra dividend brings high leverage risks

D'Ieteren SA

10/09/2024 10:04

** Shares in D'Ieteren  IETB.BR  fall 5% after the Belgian
car distributor decided to distribute an extraordinary dividend
worth around 4 billion euros ($4.41 billion) in a family
shareholding reorganization
    ** The dividend of 74 euro per share will lead to a
significant leverage increase at Belron to 5.5x from the current
2.8x, KBC Securities analyst Michiel Declercq says, adding it
will affect adjusted profit before tax due to higher interest
expenses
    ** Declercq adds that the dividend will also limit the
company's ability to invest in new opportunities as the focus
will shift towards debt repayment
    ** Degroof Petercam says that the reorganization will be
financed by 2.2 billion euros from Belron, 1 billion euros from
debt, and 0.8 billion euros from available liquidity
    ** The reorganisation involves Nicolas D'Ieteren buying out
his cousin Olivier Périer to obtain 50.1% of the outstanding
shares, with the remaining 10.6% to be sold gradually,
increasing the free float
    ** Session's losses wipe off 614.5 million euros from the
company's market cap

($1 = 0.9063 euros)

 (Reporting by Anna Peverieri)
 ((Anna.peverieri@thomsonreuters.com))