If there is a box of surprises in Spanish equities that is none other than the distribution company Día. These days it is making the news because it has generated one of the highest revaluations in the continuous market of the Spanish stock market in recent years. To the extent that their actions have up almost 70% in a single trading session. That is, an investor who has invested 10.000 euros at the beginning of the week, will have achieved profits of no less than around 7.000 euros. Something to which a good part of small and medium investors aspire. Earn a lot of money in a very short space of time.
All of them, after this company left the selective equity index, The Ibex 35, last year. As a consequence of its dire technical condition, it had once lost no less than 80% of its stock market valuation. After having been trading for many years in levels of 5 or 6 euros the action. To later collapse below the euro unit in one of the harshest punishments that small and medium investors have received in recent years. To the point of being the worst of the values in the national equities.
But what nobody thought is what is happening these days and they have made this value return to the front pages of the economic news. With a business movement that has caught all savers with a different foot. Through a takeover bid that can be very interesting for the interests of savers who have taken positions in this company of special relevance. With a price that supposes a premium estimated around 55 % on the closing price of DIA this past Monday.
Day: OPA at 0,67 euros
The trigger for this huge rise in the stock market is due to the fact that the important investor Fridman has launched a takeover bid for Día to 0,67 euros and will then make an extension. The reaction in the equity markets has been immediate and the buying positions have been imposed with particular clarity on the sellers. The Luxembourg fund Letterone, the investment vehicle of the Russian businessman, has communicated to the National Securities Market Commission (CNMV) its intention to carry out a takeover bid, with the advice of Goldman Sachs, on 100% of the capital of the chain that would be followed by a capital increase for 500 million.
The explanation they have given from this investment fund is that "the company needs a new vision, a new strategy and a financial solution that solves short-term liquidity requirements and guarantees the long-term future of DIA." On the other hand, the OPA needs, on the other hand, the CNMV approval, and is subject to the shareholders representing at least 35,5% of the total shares of this listed company accepting it. Something that at first seems something viable at this precise moment.
Abandoned by investors
This corporate event takes place at a time of very little interest on the part of investors and where the exchange of securities in the markets had declined with great intensity. That is, the contracting volume it was actually very low and this does not benefit taking positions in one of the most particular values of Spanish equities. On the other hand, it cannot be forgotten that in recent months many small and medium investors have abandoned their positions in the stock. Beyond other technical considerations and maybe also from the point of its fundamentals.
At this time it's too late to open positions in this value, since it is an enveloping rise, it has not given reasons to buy shares as the price of its shares has been adjusted to the one indicated since the takeover bid. Therefore, this move is not beneficial to the real interests of savers. At least in the prices at which it is quoted at the moment, since this business event has surprised all financial agents. In any case, it is not feasible that in the next few days it will be able to overcome the barrier that it has located in the euro unit.
Business results
During the first nine months of the year, the comparable sales of the DIA Group, grew 2,7%, excluding the calendar effect. However, incorporating the effect of the depreciation of the Brazilian and Argentine currencies, sales fell by 9,0%, representing gross sales under the banner of 6.949 million euros. Some results that of course have not been well received by the different financial agents. To the extent that the recommendation of equity market analysts was to divest themselves of their positions.
On the other hand, it cannot be forgotten that this food distribution company is not going through the best of times from a business point of view. In this sense, there have been rumors about the interest of other distribution groups for get hold of this line of business in the next few months. Because in effect, the war to gain control of the supermarket chain is more than evident, and where even Mercadona has an interest in opening business positions, depending on the turn events take from now on.
With a 56% premium
In any of the cases, there is one thing evident and that is that Dia is still in a very complicated situation. After the apparent calm phase in which its listing had entered in recent weeks, everything has changed after learning that Letter One has launched a takeover bid at 0,67 euros per share. It is an operation that involves a premium around 56%. It can be very profitable for last minute investors, that is to say that they have entered the value in the last days since they can make a very notable profit from the operation. Even above 50% in what would be a very beneficial move for your personal interests.
Another very different thing is the situation of first-time investors and that they bought their titles for 5 or 6 euros. In this case, there is no doubt that they will lose a lot of money along the way since the price of the takeover bid or exceeds one euro unit. Although it is expected that there will be another movement of these characteristics that will raise the price of the offer. However, with differences that are not expected to be substantial or very significant. Those who have been in the company for several years will have no choice but to assume that they will have to face heavy losses in the operation.
To attend the OPA or not?
This is the approach of stock market users who are currently positioned in value. Well, they will have no other solution than to go to the takeover bid, although it really weighs them down. If they don't you will have a lot of trouble selling the titles of this company. Among other reasons, because there won't be enough buyers to formalize this transaction. And in this way, they can lose even more money in the positions opened in Day. That is, the best solution is to go to the OPA. And if this is improved, then much better for everyone.
On the other hand, at the moment the valuation of their prices has entered a stabilization phase in the face of what may happen in the coming days. From this general scenario, positions can be opened hoping that the price of the OPA can rise. In this way, they are in a position to make the operation profitable. around 5% or 10%. Of course, not much more since the upward path is now more limited. The real problem lies with the small and medium investors who had been positioned for a long time in this member of the national continuous market.
Excluded from listing
In any case, there is one thing that is very clear and that is that in a short time we will no longer see this company from the distribution sector trading on the equity markets. It's just matter of time and everything may unfold faster than you initially thought. An additional reason to make a decision in a short space of time and that happens to go to the takeover bid that landed these days in the equity markets.
Unfortunately, no other alternatives are offered to investors. Where, it is preferable to leave the value with a loss than to leave everything in the financial markets. It is not exactly an idyllic setting for the interests of retailers at the moment. They will have to make a decision one way or the other. The real problem lies with the small and medium investors who had long been positioned in this member of the national continuous market.