THE GetNet (GETT11) surprised the market by announcing that will bid farewell to the Brazilian Stock Exchange and Nasdaqus U.Sjust seven months after listing.
In this session, the shares closed up 23%, at R$ 4.5, reducing the premium in relation to the R$ 4.7 offered by the Santander (SANB11), its controller, to holders of shares. “Investors rushed to buy the paper back, because it was well below that”, explains Fabrício Gonçalvez, CEO of Box Asset Management.
According to information, the decision to go private came from the Santander from Spain, which holds 90% of the PagoNxt, controlling shareholder of GetNet. The movement also takes place in Mexicowith the delisting of the Santander Mexico.
Specialists consulted by Money Times are somewhat divided on the real reason for the takeover offer. According to an analyst at a management company, who did not want to be identified, operationally, the departure of GetNet does not change anything.
“THE Santander from Spain saw that the stock was very cheap and decided to go private. It’s a societal issue,” he puts it.
In the opinion of Gonçalvez, from Box Asset, the operation caught the short pants market.
“It is speculated that the company suffers from problems of liquidity. And this obstacle is added to a regulatory war. With the competition war in the sector, profit margins are reduced. As much as the result for the first quarter was very good, margins decreased due to competition”, he says.
In the first quarter, the company profited R$ 98.9 million, up 76%. Despite this, there was a reduction of 50% against the fourth quarter.
Gabriel Gracia, analyst at Guide Investmentssays that the closing occurs because GetNet did not unlock the value that the shareholder was expecting, especially after the fall of the shares.
Since it debuted, the action has dropped about 30%, but much less than other machines, such as stone (STNE) and PagSeguro.
“The real reason for leaving is still on the radar, as the company made it clear that the objective was to raise funds with a focus on expanding the market in which it operates, and that it would position itself as the main name in the segment. However, the general market scenario had a negative impact on both the company and its competitors”, argues Sidney Lima, analyst at top gain.
Currently, the GetNet is the third largest payment machine in market share, behind sky (CIEL3) and from Networkof Itau (ITUB4).
He also believes that the delisting of the company’s shares from the Stock Exchange does not have an impact on the sector, as it is just a change in ownership.
THE BTG Pactualin a report sent to clients, points out that looking back, the Santander Group successfully transferred the share of the getnet of Santander Brazil to PagoNxt very cheaply.
What to do now with GetNet?
In a report, the citi states that the company failed in the spin-off objective, to unlock value for the group.
For the bank, the relationship with its controlling shareholder has been creating corporate governancewhich poses a risk to the paper.
Citi has a neutral recommendation, with a target price of R$3.7.
already the BTG calculates that, in recent months, the stock has been trading at multiples prices of 7.3x P/E and 5.7x P/E for 2023.
“In fact, we even had the company in the portfolio of small caps of our strategy team for a while. But we did not have a buy rating due to the stock’s low liquidity and potential conflicts of interest in listing Getnet separately from Santander Brazil“, he argues.
Top Gain’s Lima doesn’t see much potential for action going forward.
“Considering that the possible payment of BRL 2.36 per common share (GETT3), BRL 2.36 per preferred share (GETT4) and BRL 4.72 per unit (GETT11), and automatically with today’s movement, the market has already reached these levels”, he observes.
In the analyst’s opinion, for the investor who plays the role of GetNetit may be interesting to undo to readjust the portfolio in new opportunities, “given that the paper is immersed in an unstable sector, in the midst of a real liquidity problem”.
“And I believe that the controller has not been able, as proposed in the IPO, to create value for the company as expected, which will hardly change, considering the economic scenario and competition”, he adds.
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Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
