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CONSUMER CYCLICALS: Robert Bosch (RBOSGR NR/A/A): Financing

CONSUMER CYCLICALS
  • Management was tight lipped on the call but said the acquisition will be funded from “own resources” twice, including after a direct question on bond issuance.
  • Cash and equivalents at FY23 was €7.4bn. Bosch also held €3.3bn in term deposits and €14.3bn in securities (excludes those pledged to employees). It had €1.8bn in FCF last year and paid €0.7bn in dividends.
  • Without knowing the details of the security portfolio, we can’t say for sure, but it appears Bosch could fund this €7.7bn acquisition without new debt if they so wish.

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