05/14/2019

Corporación Financiera Alba reached a net profit of €64 million in the first quarter of 2019

Corporación Financiera Alba reached a consolidated net profit of €64 million in the first quarter of 2019, compared to €30 million in the same period of the previous year (+111.2%). This increase in the results of the first quarter of 2019 includes, both a revaluation of the Mecalux shareholding and capital gains obtained from short-term financial investments.

Net Asset Value (NAV) was €4.309 billion on 31 March 2019, equivalent to €73.99 per share. Alba’s share price on that same date, €44.20, represents a discount of 40.3% in the NAV per share. NAV, both in absolute terms and per share, increased by 10.2% compared to the previous quarter.

Alba’s net cash position amounted to €430 million as of 31 March 2019. A significant portion of this cash position has been used in the acquisition of a stake in Verisure early April.

The investments made by Alba in the first quarter of 2019 were as follows:

• Acquisition of 1.58% of Parques Reunidos for €13.4 million, increasing the stake in this Company to 23.02%.
• Purchase of 0.03% of CIE Automotive for €0.8 million, increasing the stake in this Company to 10.13%.

During the first quarter of 2019 Alba did not make any divestitures.
As of 31 March 2019, Alba has announced the following operations:

• The agreement to purchase a 8.4% stake in Shield Luxco 1.5 through an investment of €557 million. Through this company, Alba will have an indirect stake of 7.5% of Verisure (Company which also operates under the brand “Securitas Direct”). According to the cited agreement on 5 April, Alba acquired a 7.2% stake of the share capital of Shield Luxco 1.5, acquiring the remaining shares over the following weeks.
• The sale, in late April, of the full shareholding of 24.38% in the share capital of Mecalux for €122 million. Alba’s share includes 8.78% direct and 15.60% indirect, through Deyá Capital. With this sale, Alba earned a total of €27 million in capital gains and collected dividends to the amount of €16 million since July 2010.
• In connection with the Advance Notice of the voluntary takeover bid submitted by a company controlled by EQT for Parques Reunidos, Alba irrevocably committed to providing all of its shares in the cited Company (representative of 23.02% of the share capital), in the event that the result of the offer is positive.
• Alba will invest, through Deyá Capital, up to a maximum of €20 million in KKR’s takeover bid for Telepizza, depending on the final acquisition percentage.

The Board of Directors has convened the Ordinary General Shareholders’ Meeting, which will be held on 17 June for its first session and in which, among other points, the distribution of dividends for the year will be put to the shareholders for approval, which will involve the payment of a supplementary dividend of €0.50 gross per share, from the profits of 2018.
Alba’s portfolio at 31 March 2019 was as follows: