On October 3, 2023, Vantiva announced that it had reached an agreement with CommScope to acquire its Home Networks business, in exchange for a 25% stake in Vantiva.
CommScope will reinvest the entire acquisition price in a reserved capital increase giving it the right to a 25% stake in Vantiva (post-capital increase)1. To this end, the company has today published the draft resolutions in the BALO.
Vantiva points out that, from the parties’ point of view, the value of the transaction lies primarily in the realization of future synergies made possible by the combination of the Home Networks business with Vantiva. The integration of the acquired businesses should lead to additional financing requirements before the benefits of the synergies. As a result, the company plans to meet these new needs notably by extending its existing credit lines to the combined perimeter, and by optimizing the acquired working capital. The company is therefore confident in its ability to meet the liquidity needs resulting from the transaction over the next twelve months.
For the purposes of the transaction, Vantiva and CommScope have assumed a value of 88 million euros for the assets acquired, based mainly on discounted cash flows. This valuation and the exchange ratio will be the subject of a fairness opinion by RSM, acting as an independent expert. This will be made available on the Vantiva website prior to the Annual General Meeting.
The valuation of the acquired assets adopted for the purposes of the transaction results in a unit issue price for Vantiva shares of sixty-five euro cents (€0.65) (including share premium). This valuation should not be used to draw conclusions concerning the evolution of Vantiva’s share price.
Warning: Forward Looking Statements
This press release contains certain statements that constitute “forward-looking statements”, including but not limited to statements that are predictions of or indicate future events, trends, plans or objectives, based on certain assumptions or which do not directly relate to historical or current facts. Such forward-looking statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed, forecasted, or implied by such forward-looking statements. For a more complete list and description of such risks and uncertainties, refer to Vantiva’s filings with the French Autorité des marchés financiers. 2021 Universal Registration Document (Document d’enregistrement universel) has been filed with the French Autorité des marchés financiers (AMF) on April 26, 2023, under number D-23-0337. GlobeNewswire