Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  NASDAQ OMX HELSINKI LTD.  >  Lemminkainen Oyj    LEM1S   FI0009900336

LEMMINKAINEN OYJ (LEM1S)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Finnish builder YIT to buy rival Lemminkainen in stock deal

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/19/2017 | 11:35am CEST

HELSINKI (Reuters) - Finland's largest construction company YIT will acquire rival Lemminkainen for 632 million euros (553.6 million pounds) in an all-share deal aimed at boosting growth, the firms said on Monday.

The acquisition will give YIT the size to compete better in its core Nordic markets as well as Russia, following a drop in profits due to the Ukraine crisis, Russian recession and weakened rouble.

Lemminkainen shareholders will receive 3.6146 new shares in YIT for each share held, valuing Lemminkainen at 27.29 euros per share, a 40 percent premium to its closing price on Friday.

Shares in Lemminkainen jumped 40.6 percent to 27.34 euros, while YIT was 4.8 percent higher at 0837 GMT.

"The combination is expected to create significant value for the shareholders of the combined company through decreased sensitivity to economic cycles and improved competitiveness providing a strong platform for growth," the firms said.

The combined company will have sales of about 3.4 billion euros and it is expected to generate annual synergies of some 40 million euros by 2020. YIT shareholders will own 60 percent of the firm and Lemminkainen's owners the remaining 40 percent.

"It makes sense, both companies needed more size. Synergies seem to be very significant if they can achieve them. The businesses complement each other with not very much overlaps," said Kepler Cheuvreux analyst Hjalmar Ahlberg, who has a "hold" rating on YIT's stock.

The deal is subject to approvals by shareholder meetings due on September, as well as competition authorities.

The company and analysts said they were not expecting objections from antitrust authorities as big Swedish players NCC and Skanska, as well as smaller local rivals, are active in the Finnish market.

More than half of YIT's and Lemminkainen's combined sales in 2016 came from Finland, while the rest was generated in other Nordic and Baltic countries, Russia and Central Eastern Europe.

(Reporting by Jussi Rosendahl; editing by David Clarke)

Stocks treated in this article : Lemminkainen Oyj, YIT Oyj, Skanska, NCC
Stocks mentioned in the article
ChangeLast1st jan.
NCC AB 0.18% 163.05 Delayed Quote.4.01%
SKANSKA -0.09% 168.35 Delayed Quote.0.50%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on LEMMINKAINEN OYJ
01/31LEMMINKAINEN OYJ : Lemminkäinen redeems the EUR 35.2 million hybrid bond Stock e..
PU
01/31LEMMINKAINEN OYJ : Lemminkäinen and YIT will complete the merger Stock exchange ..
PU
01/31LEMMINKAINEN OYJ : Lemminkäinen redeems the EUR 35.2 million hybrid bond
AQ
01/31LEMMINKAINEN OYJ : Lemminkäinen and YIT will complete the merger
AQ
01/26LEMMINKAINEN OYJ : The FCCA has given the final approval decision for the merger..
PU
01/26LEMMINKAINEN OYJ : The FCCA has given the final approval decision for the merger..
AQ
01/24LEMMINKAINEN OYJ : Publication of Lemminkäinen Corporation's Financial Statement..
PU
01/24LEMMINKAINEN OYJ : Publication of Lemminkäinen Corporation's Financial Statement..
AQ
01/16LEMMINKAINEN OYJ : The FCCA will approve the merger of Lemminkäinen and YIT unco..
PU
01/16LEMMINKAINEN OYJ : The FCCA will approve the merger of Lemminkäinen and YIT unco..
AQ
More news
Financials (€)
Chart LEMMINKAINEN OYJ
Duration : Period :
Lemminkainen Oyj Technical Analysis Chart | LEM1S | FI0009900336 | 4-Traders
Income Statement Evolution
Consensus
 
Mean consensus
Number of Analysts
Average target price -
Spread / Average Target -100%
EPS Revisions
Sector and Competitors
1st jan.Capitalization (M$)
LEMMINKAINEN OYJ4.50%653
VINCI2.08%59 455
CHINA STATE CONSTRUCTION ENGINEERING CORPORATION-5.99%39 196
CHINA COMMUNICATIONS CONSTRUCTION CO LTD-5.04%28 434
LARSEN & TOUBRO4.69%27 219
CHINA RAILWAY GROUP LTD-10.97%25 121