Hydro Plant Maker Andritz's Estimate Raised at Hauck on AE&E Acquisition
Andritz AG, the world’s second- biggest maker of hydropower plants, had its price estimate raised to 72 euros from 68 euros at Hauck & Aufhaeuser, which said the company’s acquisition of A-Tec Industries AG’s AE&E Austria unit was positive for the shareholders of Andritz.
“The acquisition price has likely been very cheap, possibly alone creating value of more than 2 euros per Andritz share and it opens up new growth potential,” Roland Rapelius, an analyst at Hauck, wrote in a note to investors today. In addition “risks from existing projects are expected to be under control as Andritz’ core competences are in large project management” and “the industrial logic looks convincing as Andritz so far was not active in larger fluidized bed boilers,” which its competitor Metso Oyj is already offering.
Hans-Georg Kantner, the spokesman of insolvent A-Tec’s creditor committee, said last night that Andritz had agreed to buy the unit in a deal valued at between 5 million euros ($6.6 million) and 10 million euros. Andritz will pay for AE&E Austria in cash and by taking over financial obligations, accoring to Kantner, a representative of credit protection association Kreditschutzverband von 1870.
Andritz today confirmed the acquisition without disclosing a purchase price.