The supervisory board of Ordina became aware of rumors in the market, concerning competitors that may have expressed interest in the acquisition of Ordina to obtain foothold in the Benelux.
To determine its position in case the company is indeed approached by potential bidders, the supervisory board has requested WSO Valuation Services to perform a valuation of Ordina stand-alone and as target including the potential synergy effects that would benefit strategic buyers.
The purpose of the requested valuation is to determine whether shareholder value would be maximized by continuing the current strategy and exploiting Ordina on a stand-alone basis. Or whether shareholders would be better off with a direct sale to a strategic party based on the current stock price plus an expected premium.
The object of valuation is the equity of Ordina N.V. at the valuation date 31 December 2018.
The economic concept of value will constitute the foundation of this report, meaning that value is primarily defined by the present value of future income. Stock pricing and multiples will be applied to define (expected) pricing.
Ordina will be valued stand-alone and in a transactional context under the assumption of a going-concern basis. NIRV-directive 510 constitutes the premises of this valuation report.
For the assessment of Ordina’s value in different contexts, an income approach has been considered as primary reference. For benchmarking purposes market approaches have been considered as well.
The Discounted Cash Flow (DCF) is used to determine the stand-alone value of Ordina and to determine the value including synergies for strategic buyers in a transactional context.
A Comparable Company Analysis (CCA) is performed on the basis of trading multiples of peers to challenge the outcome of the stand-alone DCF-valuation.
A Comparable Transaction Analysis (CTA) is performed to determine the price that a potential buyer might pay and hence the likelihood of shareholders receiving a price similar to the calculated DCF-value in a transactional context.
Stock pricing is used as point of reference for the resulting valuations and this reports conclusions.
The report opens with a brief introduction of Ordina and a high-level overview of the company’s recent history to provide context for the subsequent chapters. Next, Ordina’s environment will be analyzed on a macro, meso (industry) and micro (company) level. Legal and tax aspects will be stipulated in the following chapter, after which an analysis of Ordina’s historical performance will performed. Based on the analysis of the company’s environment and its historical performance, in the next chapter two scenarios will be forecasted: a management case and a base case. These constitute the basis for the stand-alone valuation in chapter 8 and the valuation including synergies in chapter 9.
The outcome of the DCF-valuations will be compared to the outcome of the Comparable Company Analysis and the Comparable Transaction Analysis, after which all results are presented in the closing chapter of the valuation report that contains conclusions and advice.
The content of this report is solely meant as an example of a valuation report. We did not have access to Ordina management and all content is based on public information and interpretations of the valuator. The report should not to be relied upon by any person or entity. No responsibility or liability is taken towards third parties for any loss, damage, cost or expense caused by use of or reliance on information disclosed in this report. This report must not be recited or referred to in any document or copied or made available to any other party, without prior written consent and a proper do-follow link to Ecquisiton.com.
As value in itself is subjective by nature, the conclusions of this report and the resulting valuation should be regarded as the professional opinion of the valuator.
The valuator does not own any financial interests in Ordina or any of its affiliates and confirms he has no conflict of interest in performing the engagement.