Telenet (TNET BB) Belgium
Communications
Two for the price of one - TNET’s 66.8% / 100% equity stakes in NetCo / ServCo are each worth more than the current M/Cap. Investors are more than discounting retail broadband competition / No. 4 mobile entrant risks. Opportunities for ServCo include Wallonia expansion, B2B, plus numerous initiatives (e.g. AI) to continue driving down market leading churn. Compares the situation to Telecom New Zealand, which conducted a similar split in 2011 with both units re-rating to double digit EBITDA multiples. Meanwhile, investors are being paid to wait with >7% dividend yield. TP €30 (100%+ upside).
Edition: 147
- 28 October, 2022