Elior up after it agrees to buy Derichebourg's Multiservices business

Elior SA

20/12/2022 08:27

** Shares in Elior  ELIOR.PA  rise around 5% after the
French catering group announced it will acquire its biggest
shareholder Derichebourg's  DBG.PA  Multiservices division (DMS)
    ** "Overall this deal does fix many of the issues that
surround Elior," Bernstein analysts say, pointing to increased
scale, higher margins and better balance sheet
    ** The brokerage says the merger will enhance growth, since
Derichebourg has grown at 6% CAGR since 2012, faster than Elior
    ** "The offset is likely to be lower liquidity, with
ordinary shareholders buying into a business effectively
controlled by Daniel Derichebourg," Bernstein says
    ** Derichebourg's stake in Elior is set to increase to
48.4%from 24.36%
    ** Derichebourg's shares slide 3%
 (Reporting by Federica Mileo)