LeasePlan shelves stock-market launch
LeasePlan announced on Thursday it is no longer planning its stock-market launch in Amsterdam and Brussels for the next weeks because its main shareholders today fear they won’t get the price they had in mind.
The financial climate was cooling down last week and potential investors wanted LeasePlan to offer its shares at a discount price compared to the ones of its French competitor ALD. That was not exactly what the current shareholders, the Lincoln Financing consortium, headed by pension fund managing company, PGGM, had in mind.
Between 8,5 and 12,5 billion euro
Judging by non-public analyst reports of the banks that were to guide the stock-market launch, they were hoping for a major premium. ING bank estimated LeasePlan’s value between 8,5 and 12,5 billion euro, while KBC Securities rather thought about 8 to 9,5 billion euro. To compare: competitor ALD was worth 5,8 billion euro on Thursday.
A premium yield would be proper, the banks calculated, as analysts predict LeasePlan to grow much faster than ALD the coming years and as the company was planning to offer investors 60% of the profits in dividends.
Biggest cash cow
Biggest cash cow for LeasePlan is the CarNext platform, a website and network used to sell or lease second-hand lease cars directly to the consumer and bypassing traditional wholesale buyers of large fleets.
“We see a lot of potential for CarNext.com that showed to be profitable from day one”, LeasePlan’s CEO, Tex Gunning, explained last week. “In only 15 months we expanded our presence from five to fifteen countries.” On the other hand, Gunning sees opportunities in the advance of electric cars, shared cars and self-driving vehicles.
Aston Martin losing 20%
According to one of the bankers involved in the planning of the stock-market launch, “shareholders of LeasePlan aren’t forced to sell at the moment and that’s why they don’t do it”. Apparently the Dutch number one worldwide in car leasing, managing over 1,8 million vehicles in 32 countries, will wait until the financial climate is better.
That now isn’t the right moment was proven by Aston Martin recently, seeing its value drop with 20% since its introduction at the London Stock Exchange.