Dasa (DASA3) denied in a statement to the market this Friday morning (2) the news that it would evaluate strategic alternatives for its business, including the sale of a stake or control. “The information regarding the existence of negotiations for the sale of the company or its control to third parties is not valid”, highlighted Dasa. The company also reiterated its commitment to keeping its shareholders and the market in general informed, in accordance with applicable regulations and informs that it is at your complete disposal for any additional clarification necessary.
The shares rose 6.19%, to R$7.72, at the beginning of this Friday’s session, but soon began to fall with the company’s negative performance. However, the shares soon rose again, ending the session up 3.85%, at R$7.55.
The night before, Bloomberg had reported that Dasa would evaluate strategic alternatives for its business, bringing the market’s assessment that there would be a positive reaction to the vision of financial deleveraging for the healthcare company.
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News was that discussions were in the early stages, with no formal sales process underway, but the report mentioned Rede D’Or (RDOR3) as a potentially interested company, Citi highlighted earlier. The bank pointed out that the transaction would have the potential to improve Dasa’s capital structure.
The integrated health network ended the third quarter of 2023 with a ratio between net debt and Ebitda (earnings before interest, taxes, depreciation and amortization) of 3.8 times, or 5.6 times including accounts payable from mergers and acquisitions (M&As) and ex-IFRS16.
Unlocking synergies could be one of the attractions for the business. “That said, it seems difficult to assess its potential implications with few details about its terms, conditions and business nature (e.g. capital injection, business combination, among others) at this time,” said Citi analysts.
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Itaú BBA highlighted the alternatives that would be on the table: i) sale of one or some assets currently held by Dasa (such as the diagnostics business or a hospital); ii) sale of minority stake; It is iii) alienation of control or the entire company. “Each of these alternatives carries a different interpretation”, stated the bank’s analysts, who detailed the scenarios.
In relation to a partial sale of assetsthe BBA considered that many players could eventually be interested in Dasa’s assets in a scenario of selling parts of the operation.
For example, hospital groups (e.g. Rede D’Or) could be interested in expanding their hospital presence (or even “venturing” into diagnostics) through inorganic movements. “Of course, we would have to keep in mind the market concentration implicit in any of these transactions. In Rio de Janeiro, according to data from CNES/DataSUS, Rede D’Or has a 21% market share and Dasa has a 2% share. In Brasília, Rede D’Or has 9% and Dasa has 11%. In São Luís (MA), Rede D’Or has 10% and Dasa has 20%”, they assessed.
Already the sale of a minority stake It could eventually make sense for a health insurer interested in increasing its alignment with the network of care providers (health care diagnostic and treatment services) and gaining more control over its costs (like Bradesco Saúde). In this case, a primary injection could help improve Dasa’s financial leverage situation and ally the company with a significant partner.
Already one control sale would be the most complex scenario. Dasa has an important market share in some of the most important capitals in Brazil, such as Brasília, São Luís and São Paulo. Furthermore, it is the largest diagnostics player on the market. The BBA highlighted Dasa’s list of hospitals, which is below:
“The news should be seen as positive for Dasa, as many of these scenarios could alleviate financial leverage, which is a fundamental concern for the market. If a partial sale is indeed carried out to Rede D’Or and if it is allowed by the antitrust regulator Cade (Administrative Council for Economic Defense), the strategy would make sense, but we would need to know about the numbers of the operation”, pointed out the BBA earlier. .
In the case of a merger between Rede D’Or and Dasa, the acquired company could potentially impact the financial leverage of the combined company. Furthermore, the BBA assessed that the approval process by Cade would be much more complex, as would the integration of assets.
Citi and Itaú BBA have a neutral or equivalent recommendation (marketperform, or performance in line with the market average in the case of BBA) for Dasa shares, with a respective target price of R$7 (potential appreciation of 38% compared to Thursday’s closing) and R$15 (upside of 106%). In the year up to the previous session, shares fell 24.42%.