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DOBIM Deal Terms Announced; Industrial Logic Sound

FINANCIALS

doValue (DOBIM: BB/BB), the Italian loan servicer, is today confirming the financial details of its deal to take over local rival Gardant. Industrial logic appears sensible but does extend leverage in the acquirer and heavily dilutes existing equity holders. Cash bond prices are up c.4 ticks in the last month, more mixed YTD so market evidently sanguine on the logic vs. leverage argument.


  • doValue announced the deal on 21-Mar and indicated an equity raise of <EUR200m, which was still great than its market cap (currently EUR176m). Equity increase confirmed today at EUR150m.
  • Deal price is EUR230m, which implies an additional net EUR80m of debt on top of the existing net debt of EUR564m in the acquirer. This is reportedly all coming from bank debt.
  • Deal completion is expected in 4Q23.

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