OHL – Delivering the goods.
All,
Please refer to our unchanged analysis here.
Given the previous announcement from OHL, the sale of the War Office stake was expected, but it still represents further delivery on OHL’s recovery plan and should prompt the company’s banks to increase guarantee lines. Also, the proceeds from this and the Toledo Hospital disposal will eliminate the €140m liquidity gap identified in our analysis.
War Office Stake sold:
OHL has reached agreement on the sale of its 49% stake in the Old War Office Project to the Hinduja Group (who were the partner in the project). No price was given, but the stake was valued at €100m in September 2020 and the company confirmed there was no “material impact” on the prospectus for the newly completed capital increase.
Positioning:
We continue to hold our position – originally in the SUNs for 6% of NAV.
Happy to discuss any ideas as always.
Aengus
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E: amcmahon@sarria.co.uk
T: +44 203 744 7055