|Bid||60.20 x 0|
|Ask||60.26 x 0|
|Day's Range||59.94 - 61.76|
|52 Week Range||42.39 - 62.28|
|Beta (5Y Monthly)||0.67|
|PE Ratio (TTM)||34.29|
|Earnings Date||Jul 17, 2020|
|Forward Dividend & Yield||1.70 (2.74%)|
|Ex-Dividend Date||Feb 26, 2020|
|1y Target Est||43.00|
KONE Oyj's's (HEL:KNEBV) stock is up by a considerable 14% over the past month. We wonder if and what role the...
A week ago, KONE Oyj (HEL:KNEBV) came out with a strong set of quarterly numbers that could potentially lead to a...
Kone <KNEBV.HE> reported a smaller than expected 10% fall in first-quarter profit on Wednesday, with demand for its elevators and services strong in many countries despite the coronavirus outbreak. The company performed strongly in central and northern Europe and the Americas in the first quarter, Chief Executive Henrik Ehrnrooth said, but the impact of the coronavirus had hurt Kone in China, India and southern Europe. "We have been able to weather the storm quite nicely," Chief Executive Henrik Ehrnrooth told reporters.
Today we'll look at KONE Oyj (HEL:KNEBV) and reflect on its potential as an investment. In particular, we'll consider...
(Bloomberg Opinion) -- With impeccable timing, the private equity industry has agreed a jumbo leveraged buyout just as markets have turned dramatically. It’s a bad look, and Advent International and Cinven will have to strain every sinew to make their 17 billion-euro ($19 billion) deal for Thyssenkrupp AG’s elevator business pay off.Germany’s Thyssenkrupp is a distressed seller but the industrial conglomerate ran the auction with finesse, using a high price from Finnish rival Kone Oyj to stimulate the bidding in the early stages. Kone benefited from more potential merger savings. It also faced antitrust hurdles. Hence the vendor put two buyout consortiums into the last round to battle it out. Regulatory clearance became irrelevant and the fight came down to money. Result? Advent and Cinven paid the price that Kone was mooting, without the attendant antitrust uncertainty.The sale alleviates Thyssenkrupp’s debt burden. It doesn’t address the weak profitability of its remaining operations. Activist shareholder Cevian Capital gets the breakup it sought, but Thyssenkrupp’s shares are at their lowest since 2003.The puzzle is why Advent and Cinven were willing to pay nearly 1 billion euros more than the rival consortium, which included Blackstone Group Inc. In fact, the deal isn’t as expensive as the big number suggests. It works out at 16 times the asset’s 1.1 billion euros of Ebitda for this year, as forecast by Jefferies. Peers were trading on 18 times before this week’s market correction, according to the broker.The new owners should be able to lift the elevator maker’s Ebitda faster than its recent low single-digit growth rate, given Thyssenkrupp couldn’t afford much investment. Suppose Ebitda after five years is 1.4 billion euros and the business fetches a peer multiple on sale. The unit would be worth 8 billion euros more than its acquisition price.Advent and Cinven would juice that return with leverage. The predictability of revenue from servicing elevators means the asset can probably sustain more debt than the average buyout. Borrowings of about 8 times Ebitda would leave the consortium putting in 8 billion euros of equity. So they could plausibly double their money on exit, which equates to a mid-teens internal rate of return. If there was room to pay down debt along the way, a return approaching 20% might be possible.There are a lot of ifs and buts, though. At such levels of borrowing the consortium is probably relying on so-called “payment-in-kind” notes, which roll up interest into the sum to be repaid on maturity. If that financing fell due before it was time to exit, there would be a need to refinance or sell assets.Elevator businesses are attractive to lenders given that lifts will always need maintenance. Still, the current market conditions are scarcely helpful here. And while Advent and Cinven are no amateurs, it’s natural to ask what value they see that Blackstone did not.Big deals are so scarce that private equity will pay up to secure them when they become available. The timing is striking all the same. U.S. energy group TXU sold to private equity for $48 billion before the last crisis, while pharmacist Alliance Boots went for 11.8 billion pounds ($15 billion at today’s rates). TXU went bust. Advent and Cinven will hope this deal is remembered for the right reasons.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
FRANKFURT/DUESSELDORF, Germany (Reuters) - Germany's Thyssenkrupp has shortlisted two private equity consortia in the sale of its 16 billion euro ($17 billion) elevator unit, dealing a blow to Finland's Kone, which withdrew from the closely watched deal. Potentially Europe's biggest private-equity deal in 13 years, the transaction is now in its last stages and could come to a head next week when Thyssenkrupp's supervisory board is scheduled to meet. The cash-strapped conglomerate said it would focus on negotiations with two private equity consortia: one consisting of Blackstone, Carlyle and the Canadian Pension Plan Investment Board and another led by Advent and Cinven.
FRANKFURT/DUESSELDORF, Germany (Reuters) - Swiss elevator maker Schindler would embark on an all-out antitrust offensive in the courts to stall any deal to combine Thyssenkrupp's lift division with rival Kone, board member Alfred Schindler told Reuters. A Kone-Thyssenkrupp Elevator merger would create the world's biggest lift maker, leapfrogging market leader Otis, owned by United Technologies, and Schindler in second place. Thyssenkrupp and Otis declined to comment.
FRANKFURT/DUESSELDORF (Reuters) - Finland's Kone and private equity firms are battling to buy ThyssenKrupp's prized elevator division worth more than 15 billion euros ($16.6 billion), a deal which would be Europe's biggest private equity deal in 13 years. Thyssenkrupp says it will either list the business, sell either a stake or the business in its entirety as the company aims to cut 12.4 billion euros ($13.7 billion) in debt and pension liabilities. - Kone has submitted a 17 billion euro non-binding bid, including a roughly 3-billion break fee, beating three private equity consortia whose offers were between 15-16 billion.
Last week, you might have seen that KONE Oyj (HEL:KNEBV) released its yearly result to the market. The early response...
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
(Bloomberg Opinion) -- Private equity firms are having to adopt divergent strategies to get a piece of Europe’s hottest M&A deal. Ambition and aggression appears to have the advantage, but it would be foolish to rule out tactical cunning.Blackstone Group Inc. is teaming up with Carlyle Group LP and a Canadian pension fund — a formidable force combined — in an attempt to buy all of Thyssenkrupp AG’s colossal elevator division. CVC Capital Partners is being less greedy and more creative, backing a rival proposal by Thyssenkrupp’s industrial peer Kone Oyj, which would let CVC pick up assets jettisoned by Kone to assuage trustbusters.Kone is offering to pay about 17 billion euros ($18.7 billion). The several pitches from private equity consortia including Blackstone’s are under 16 billion euros, Bloomberg News reported on Tuesday. The Finnish company needs to offer a premium to compensate for the comprehensive antitrust investigation that its offer would trigger, which would push out the deal’s completion date and create uncertainty.Time matters because Thyssenkrupp’s financial situation is strained. Net debt was 4.3 billion euros at the end of its last financial year, the pension deficit was 8.6 billion euros and the group made a yearly loss. Kone’s proposal seeks to cater to the vendor’s needs. It’s not just that the price is higher; there would be an immediate down-payment of several billion euros. Antitrust risk could be mitigated partly by CVC agreeing a side deal for Thyssenkrupp’s European assets.Kone could go further by committing to buy the business and accept whatever competition remedies were required, even if that meant a forced sale of more assets. Turning any such pledge into a practical reality isn’t so easy. It would be surprising if Kone really was willing to take on such risk, even if there’s a long list of buyout firms fond of these assets. And the more disposals it makes to meet the concerns of regulators, the greater the risk of political opposition for breaking up a German industrial icon.In short, Kone’s ability to completely eliminate antitrust risk remains a grey area. For now, the higher sticker price is the major advantage over an all-private-equity bid such as Blackstone’s. A buyout would face minimal antitrust hurdles, and the full proceeds would probably come almost as quickly as Kone’s down-payment.For Thyssenkrupp’s board, it will be tempting to take 16 billion euros upfront rather than, say, 3 billion euros immediately with 14 billion euros down the road. But the 1 billion euros difference is still a lot of money, and it’s possible Kone could go higher.At 16 to 17 times trailing adjusted Ebitda, the auction has already reached a heady level. But Kone’s potential savings would bring the multiple down. As for Blackstone, its chunky real-estate holdings would help it create value from an elevator business. This auction may have further to run. To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
FRANKFURT/DUESSELDORF, Germany (Reuters) - Finland's Kone <KNEBV.HE> has offered about 17 billion euros ($18.9 billion) for Thyssenkrupp's <TKAG.DE> elevator unit, the highest bid so far, drawing scepticism from one of the German group's labour bosses who said price alone would not cut it. Kone, which has long championed the advantages of a tie-up between the world's third- and fourth-largest elevator groups, on Tuesday said it had made a non-binding bid, a day after a deadline expired. Kone's offer represented a premium of about 1 billion euros (844 million pounds) over the best offer from leading competitors from the private equity world, according to a person familiar with the matter.
Stock pickers are generally looking for stocks that will outperform the broader market. And in our experience, buying...
KONE, a global leader in the elevator and escalator industry, today introduces the world's first digital elevator series. With built-in connectivity as standard, KONE DX Class elevators bring a new user experience to life through a combination of design, technology, new materials, apps and services.
FRANKFURT/DUESSELDORF, Germany (Reuters) - Finland's Kone has proposed paying a multi-billion euro break-up fee to Thyssenkrupp in an effort to improve its chances in an auction for the German conglomerate's elevator business, three people familiar with the matter said. Kone, in a partnership with private equity firm CVC, is among suitors for Elevator Technology (ET), which Thyssenkrupp has put up for sale in a bid to pay down pensions and debt, and invest in restructuring its other struggling businesses. Under the plans, Kone would pay the break-up free - which one source put at 3 billion euros ($3.3 billion) - upfront, making it easier for Thyssenkrupp to accept a deal with the firm, which could face an antitrust review lasting more than a year.
FRANKFURT/DUESSELDORF, Germany, Nov 19 (Reuters) - Finland's Kone has proposed paying a multi-billion euro break-up fee to Thyssenkrupp in an effort to improve its chances in an auction for the German conglomerate's elevator business, three people familiar with the matter said. Kone, in a partnership with private equity firm CVC , is among suitors for Elevator Technology (ET), which Thyssenkrupp has put up for sale in a bid to pay down pensions and debt, and invest in restructuring its other struggling businesses. Under the plans, Kone would pay the break-up free - which one source put at 3 billion euros ($3.3 billion) - upfront, making it easier for Thyssenkrupp to accept a deal with the firm, which could face an antitrust review lasting more than a year.
If you want to know who really controls KONE Oyj (HEL:KNEBV), then you'll have to look at the makeup of its share...