Neinor Homes announced this Monday that it was buying its listed rival, Quabit, in a merger by absorption operation that values the target company at 62 million euros, compared to its stock market capitalisation of 53 million euros, which represents a premium of almost 20%. Neinor is certain that 65% of the cost of the transaction will be covered by the cash flows generated by developments that are either completed and under construction with high levels of pre-sales.
What does Quabit contribute?
So what does Neinor get for 62 million euros? Firstly, a construction company, Rayet, the firm through which the founder of Quabit, Félix Abánades, first entered the real estate market. Plus a considerable reduction in costs, and a model that other companies, such as Amenabar and Gestilar, have traditionally used to better control the construction process.
Read the full article in Spanish.