Partial Takeover Bid For Naturgy By The Dutch Group InfraCo

 

Today, we heard the news that the Australian investment fund IFM investors, through its European subsidiary InfraCo based in the Netherlands, has made a voluntary and partial public offering of 22.69% of shares Naturgy, which is equivalent to a total of 220 million shares.

This offer has been made with a premium of more than 20% of the price before the market opens, with a price of 23 euros per share, which has caused the price to shoot up to around %16.60, surpassing the price of 22.32 euros per share.

In turn, Naturgy has issued a statement this morning, that it has learned of the terms and that the Board must assess the offer, and will make a pronouncement when it deems it appropriate, given that they continue to work for the interest of the shareholders.

Naturgy is a Spanish company listed on the IBEX35 operating within the energy sector, specifically electricity, gas, and renewable energy, which together with Iberdrola and Endesa dominates the Spanish energy sector. Naturgy carries out activities in the supply, generation, distribution and commercialization of natural gas and electricity.

Technically speaking, despite the fact that the energy sector has benefited greatly in recent years due to a low interest rate scenario which benefits its debt structure. During the past year, it has lost 15% of its value due to the coronavirus crisis which hit Spanish stock market, and after sharp falls in March 2020, the price was relatively unmoved for the rest of the year, within the lateral range reflected between the red and green bands.

After the break of this lateral range last November, the price began a clear upward trend that has been reinforced by setting the target price of this offer at 23 euros per share, which brings it closer to levels close to before the pandemic.

It is important to see how this stock will behave in the coming days and see if it is able to maintain current levels after overcoming resistance at 20.70 and 22 euros per share.

(Click on image to enlarge)

Source: Admiral Markets MetaTrader 5. Naturgy daily chart. Data range: from October 3, 2019 to January 26, 2021. Prepared on January 26, 2021 at 12:30 CET. Keep in mind that past returns do not guarantee future returns.

Price evolution of the last 5 years:

• 2020: -15.35%
• 2019: 0.69%
• 2018: 15.63%
• 2017: 7.48%
• 2016: -4.25%