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UPDATE 1-Metals recycler Befesa plans $1.5 billion Frankfurt IPO next month
October 20, 2017 / 7:38 AM / a month ago

UPDATE 1-Metals recycler Befesa plans $1.5 billion Frankfurt IPO next month

* Shares offered in 28-38 euro price range

* Owner Triton to sell shares worth up to 707 mln euros

* Stock slated to start trading on Nov. 3 (Adds company valuation, details)

FRANKFURT, Oct 20 (Reuters) - The main investor in German metals recycling group Befesa is planning to sell shares worth up to 707 million euros ($835 million) when the company joins the Frankfurt stock market next month, it said in a statement on Friday.

If successful, Befesa would be the largest initial public offering (IPO) in Germany this year after online takeaway food delivery group Delivery Hero and ahead of meal kit group HelloFresh, which is also planning to list in November.

Befesa, which controls almost half of Europe’s steel dust recycling market, could be valued at roughly 1.3 billion euros excluding debt in the deal.

No newly issued shares are on sale. The offering consists of existing shares from current private equity shareholder Triton, which will may see its stake diluted to 46 percent after the IPO if the maximum number of shares is sold.

The company is offering 14.3 million shares in a price range of 28 to 38 euros apiece, plus up to 2.1 million additional shares as part of an overallotment option and another 2.1 million as part of a separate option.

The stock is slated to start trading on Nov. 3.

Befesa collects steel dust from so-called mini-mills that melt scrap to produce new steel.

While it gets fees for accepting the hazardous waste, it generates up to 90 percent of sales at its steel unit by selling zinc it extracts from the steel dust to companies such as Glencore, Nyrstar or Korea Zinc. It has a similar, but smaller aluminium operation.

In the 12 months to the end of June, Befesa posted group adjusted earnings before interest, tax (EBIT) of 133 million euros on sales of 685 million euros.

Befesa was listed in Spain from 1998 to 2011. Spain’s Abengoa bought a controlling stake in 2000 and later squeezed out minorities. It sold the company on to Triton in 2013 for 850 million euros in cash, or 1.1 billion euros including debt. ($1 = 0.8467 euros) (Reporting by Arno Schuetze; Editing by Keith Weir)

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