• ALD ANNOUNCES THE SIGNING OF A MEMORANDUM OF UNDERSTANDING TO ACQUIRE 100% OF LEASEPLAN FROM A CONSORTIUM LED BY TDR CAPITAL
• THE PROPOSED ACQUISITION OF LEASEPLAN FOR A TOTAL CONSIDERATION OF EUR 4.9 BILLION WOULD BE MADE THROUGH A COMBINATION OF CASH AND SHARES
• AT CLOSING, EXPECTED BY END 2022, SOCIETE GENERALE WOULD OWN C. 53% OF “NewALD”, LEASEPLAN SHAREHOLDERS HOLDING 30.75% . THE VALUE OF NewALD’S FREE FLOAT WOULD BE SIGNIFICANTLY HIGHER THAN PRE-CLOSING
• SOCIETE GENERALE WOULD COMMIT TO REMAIN THE LONG-TERM MAJORITY SHAREHOLDER OF NewALD
• NewALD WOULD CREATE A LEADING GLOBAL MOBILITY PLAYER, STRONGLY POSITIONED TO LEAD THE DIGITAL TRANSFORMATION OF THE INDUSTRY AND CAPTURE MOBILITY SECTOR GROWTH
• NewALD WOULD GENERATE SIGNIFICANT VALUE FOR SHAREHOLDERS, THANKS TO SCALE EFFECTS AND SYNERGIES
LeasePlan is one of the leading fleet management and mobility companies in the world by fleet size (total fleet of 1.8 million vehicles), with a global and extensive offering making it the perfect fit for ALD to shape the industry’s transformation.
The proposed combination of ALD and LeasePlan into NewALD is expected to be highly synergetic and create an opportunity to cross-leverage the two companies’ complementary capabilities. As a leading global player in mobility worldwide, NewALD would be able to benefit from a fast-growing market driven by strong underlying megatrends, including the:
- Shift from ownership to usership on all fronts: B2B, B2C and even B2E
- Data-driven digital transformation of the mobility industry
- Transition towards zero-emission and sustainable mobility
This transformative deal would be a step-change that would position NewALD for long term fleet growth of at least 6% p.a. post integration. NewALD would target an improvement in cost to income ratio to c. 45% by 2025, confirming its position as best-in-class in the industry. The transaction is expected to generate operational and procurement synergies of EUR 380 million p.a. before tax.
It is expected to provide attractive returns and significant value creation for investors. Considering the benefits of fully phased synergies and excluding restructuring costs, the pro-forma accretion of normalized earnings per share should be c.20% in 2023. Mid-term, NewALD’s dividend pay-out ratio is expected to remain between 50% and 60% until 2025.
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1 Based on EUR 12.12 per share for ALD (VWAP on Euronext between 28 Sept 21 and 27 Oct 21, date of publication of press release after market close confirming discussions concerning a potential combination) and excluding warrants
2 With 12-month lock-up. Potentially to increase by a further c.2% following the exercise of warrants, on a fully diluted basis.
3 Excluding LeasePlan Australia and LeasePlan New Zealand, which were sold to SG Fleet as per 1 September 2021
4 B2E is Business to Employee
5 Computed as: Total overheads/Gross margin (excluding used car sales result and cost of risk)
6 Computed based on ALD consensus net income group share as of 27 October 2021 (net income of EUR 623m), at constant perimeter, including fully-phased run-rate synergies and excluding restructuring costs. NewALD standalone EPS adjusted for capital increase compared to ALD’s expected EPS