[Por favor. . .???]
Would you, or could you, find a quote for the National Grid Group? Also, do you know if it's possible to get the IPO for Energis if you hold shares in the parent? Energis has an impressive customer list, including the BBC, Going Places, Unisys, Mirror Group Newspapers, Eurostar, British Gas Services, and British Gas Trading. They only target the business market. Not residences.
Thanks in advance for any help you can give.
Pat
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Energis:Valuation may climb to œ1.4bn
TUESDAY OCTOBER 21 1997
By Alan Cane
Energis, the telecom-munications arm of the National Grid, is likely to be valued at between œ1.26bn to œ1.36bn when it comes to the main market next month, according to calculations from Dresdner Kleinwort Benson, global co-ordinator for the float.
James Dodd, chief telecoms analyst, used discounted cash flow techniques to calculate the pre-initial public offering enterprise value, with an average of œ1.32bn.
Mr Dodd's valuation is about 30 per cent higher than previous estimates of the value of Energis, the largest of the UK's new operators.
Energis uses the advanced networking technology SDH to provide services to companies through fibre optic cabling wound around the earth wires of the National Grid's power distribution network.
Mr Dodd, in justifying the logic behind his valuation, said Energis had built its national network of fibre optic cabling at a cost of only œ424m and its operating costs were a 10th of those of Cable & Wireless Communications and a 100th of British Tele-communications, its two principal competitors.
Mr Dodd also pointed out that the Energis network was substantially
complete.
"Experience at other operators has shown that volumes, revenues and cash flow rise rapidly once a network is in place," he said.
A key assumption is that the UK market for business telecoms services will grow at an overall annual compound growth rate of 7.2 per cent, to give a value of œ15.1bn by 2006-2007.
Mr Dodd believes Energis could have 10 per cent of the UK business market by then.
Relatively static revenues are expected from basic telephone services, but strong growth is expected in enhanced voice - such as toll-free and toll-shared calls - and advanced data services utilising high-speed transmission technology.
Mr Dodd said that comparative valuation with US companies such as
WorldCom - currently fighting a takeover battle for MCI - Qwest and some of the local fibre optic network operators would support a value closer to $2bn (œ1.24bn) on the basis of a 20 times multiple of last reported revenues.
"However, the private market level indicated by the proposed WorldCom
offer for Brooks Fiber Properties would suggest a level approximately twice this high," he said.
WorldCom launched a takeover of Brooks Fiber Properties three weeks ago, the same day as it made its bid for MCI.>>> |
