Jefferies cuts D'Ieteren Group to 'hold' on higher debt

D'Ieteren SA

17/09/2024 07:23

** Jefferies downgrades D'Ieteren Group  IETB.BR  to "hold"
from "buy" on a soaring debt following the family shareholder
reorganisation
    ** Broker says the reorganisation will be funded through a 4
billion euro dividend from D'Ieteren Group, leading to 1.8
billion euro additional debt at holding
    ** D'Ieteren's 50.3%-owned Belron will be recapitalised and
pay a 4.3 billion euro dividend, resulting in a debt increase of
3.8 billion euros to 8.9 billion euros, or 5.5x EBITDA, broker
adds
    ** Jefferies cuts its PT by 10% to 225 euros "in line with
the transaction price, and reflecting increased debt", it says
   
    

 (Reporting by Mathias de Rozario)
 ((mathias.derozario@thomsonreuters.com))