July 26, 2021

Europcar, Volkswagen: At the end of claims

It is with old exhaust pipes that we trace the best roads, at least Volkswagen seems to think so by taking an interest in Europcar again, fifteen years after having sold off the first rental company. European cars.

As it had been founded after the war as an “Automobile Subscription”, making something new with old revisited to fuel digitization and carsharing can be strategically justified, even if the principle of buying back for 2.3 billion euros (debt included) what we had sold for 800 million euros more a decade and a half earlier says a lot about the back roads of value creation in this business.

Eurazeo, the former shareholder of Europcar flushed out by the financial restructuring made necessary last year by the pandemic, and Carl Icahn, who for too long believed in the potential of Hertz before throwing in the towel, can also bear witness.

Conversely, the former creditor of Europcar, Anchorage, who became its first shareholder with several other funds, knows that time is on its side, as at the MGM studio, which was sold with a nice tumble to Amazon.

Oddo BHF analysts note that the offer at 0.44 euros per share of the German manufacturer values ​​the targets for 2023, but without a control premium. And this is how an attempt to return to the parent company fails at the end of the claims …

The reopening, investment theme

Investors are fond of the theme of reopening the economy. Barely out of Chapter 11, Hertz doubled the size of a securitization transaction for its US fleet from $ 2 billion to $ 4 billion, with demand reaching $ 20 billion. His passage through the bankruptcy law had still wiped out more than $ 5 billion in debt …