Alba reached a consolidated net profit after taxes of EUR 462.3 M€ in the first nine months of 2017
Corporación Financiera Alba reached a consolidated net profit of EUR 462.3 million in the first nine months of 2017, more than double that of the same period for the previous year. This increase was due mainly to the gains obtained on the sale of the holding of ACS made during the period.
Net Asset Value (NAV) amounted to EUR 4,100.0 million at 30 September 2017, equivalent to EUR 70.40 per share. Alba’s share price of EUR 51.65 on this same date represents a discount of 26.6% with respect to NAV per share. NAV, both in absolute terms and per share, increased 2.8% in the first nine months and 6.1% with respect to the same date the previous year.
In the first nine months of the year, Alba invested EUR 204.2 million and made asset sales totalling EUR 876.1 million, raising its net cash position to EUR 1,063.8 million at 30 September 2017.
In October, Alba distributed a gross interim dividend of EUR 0.50 per share to its shareholders, which was charged to the 2017 profit and loss account and amounted to a total disbursement of EUR 29.1 million.
The main investments during the period were the following:
• Acquisition of 7.67% of Parques Reunidos for EUR 92.8 million, increasing its stake to 18.19%.
• Acquisition of 1.49% of Ebro Foods for EUR 46.4 million, increasing its stake in to 11.50%.
• Investment, through Deyá Capital, of EUR 40.7 million in the acquisition of an ownership interest of 44.81% in Gascan (distribution of piped propane gas in Portugal), 17.99% in Alvinesa (wine by-products management and their transformation into alcohol and other value-added products) and 30.00% in Satlink (technological solutions for the fishing sector). These are the first investments made by the second fund managed by Artá Capital.
• Acquisition of 1.59% of Euskaltel for EUR 24.1 million, increasing its stake to 10.94%.
On the other hand, divestments made in period were marked by the sale of shares of ACS carried out in the first half of the period:
• Sale of 7.52% of ACS for EUR 743.4 million, resulting in a capital gain of EUR 352.7 million and an annual IRR of 11.4% over more than 19 years.
• Sale, by Deyá Capital, of its ownership interest of 19.75% in Flex for EUR 59.2 million, obtaining total gains from the beginning of EUR 40.7 million.
• At the beginning of August, Alba sold its entire 20.0% holding in Clínica Baviera for a net amount of EUR 32.9 million, in the context of the take-over launched by Aier Eye.
• Three buildings were also sold in Madrid for a total amount of EUR 40.6 million, with an IRR for each asset of between 4% and 9% per year over approximately 26 years.
On 18 September, Alba, through Deyá Capital SCR, reached an agreement to sell its holding of 32.75% in EnCampus Residencias de Estudiantes, 17.44% in Siresa Campus and 17.44% in Siresa Campus Noroeste. The effectiveness of the sale is subject to the obtaining of the corresponding authorization from the relevant competition authorities and the final price will be adjusted according to the final closing date.
Additionally, Alba has announced today an agreement to sell its 26.5% stake in Panasa (through Deyá Capital SCR) for a total consideration of EUR 87 million. As of result of this transaction and since its initial investment in the Company in February 2011, Alba has posted a total return on investment of 3.3 times, an IRR of 20% and total capital gains of EUR 54.6 million. The closing of the transaction is subject to customary approvals from competition authorities.
Alba’s portfolio at close of the third quarter of 2017 was as follows:
Listed companies % Unlisted companies %
|Ebro Foods||11,5||In-Store Media||18,9|
|Parques Reunidos||18,2||Siresa Campus Nor.||17,4|
|Siresa Campus SII||17,4|
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