Research Update: Groupe Bruxelles Lambert Outlook Revised To Stable On Restored Investment Position And Leverage; Affirmed At 'A+'

Belgium-based investment holding company Groupe Bruxelles Lambert S.A. (GBL) recently announced the business combination of Webhelp and Concentrix, in a deal for about €1.5 billion to be paid in Concentrix shares, earn-out shares, and a seller note entitling GBL to €500 million on the second anniversary of the transaction's close. We estimate this will significantly reduce GBL's S&P Global Ratings-adjusted loan-to-value (LTV) ratio to 14.7% in 2022, placing it firmly under our 20% ceiling for the 'A+' rating. In addition, in our view, the deal will greatly improve GBL's portfolio composition and crystalize its asset agility and ability to quickly rotate its portfolio. We note the transaction is still subject to approval from Concentrix shareholders as well as regulatory and

...- Belgium-based investment holding company Groupe Bruxelles Lambert S.A. (GBL) recently announced the business combination of Webhelp and Concentrix, in a deal for about 1.5 billion to be paid in Concentrix shares, earn-out shares, and a seller note entitling GBL to 500 million on the second anniversary of the transaction's close. - We estimate this will significantly reduce GBL's S&P Global Ratings-adjusted loan-to-value (LTV) ratio to 14.7% in 2022, placing it firmly under our 20% ceiling for the 'A+' rating. - In addition, in our view, the deal will greatly improve GBL's portfolio composition and crystalize its asset agility and ability to quickly rotate its portfolio. We note the transaction is still subject to approval from Concentrix shareholders as well as regulatory and antitrust authorities and the completion of customary works council consultations. - We therefore revised our outlook on GBL to stable from negative and affirmed our 'A+' issuer credit and issue ratings on the company...

Research Update