Home » Economy » Share placement – Raiffeisen exit pushes Helvetia share into the minus | News

Share placement – Raiffeisen exit pushes Helvetia share into the minus | News

Friday, September 15th, 2017 | Economy

There is movement in the shareholders' office of Helvetia: In the course of an accelerated accounting process, the long-standing major shareholder Raiffeisen separates from its strategic shareholding in the insurance group from St. Gallen. The cooperation between the two sales partners has not changed since 1999.
It is still not known at what price the shares could be placed with institutional investors. As always, when a larger stock package comes on the market, the investors react however detuned. On the Swiss stock exchange SIX, the Helvetia share at the hour loses 2 percent to 515 Swiss francs. Shortly after the beginning of trading, the price was even 506 francs.
According to traders, the exit of Raiffeisen at Helvetia is not surprising, since some speculation has been going on in this direction for quite some time. The stance of the stakeholders is finally clear, with the result that a considerable uncertainty factor in the Eastern Swiss insurance company will be eliminated.
What did Berenberg Bank know?
Anchor shareholder with 34.1 per cent of the votes and the only shareholder with a voting share of 3 or more per cent remains the Patria Cooperative. It is highly unlikely that this major shareholder could separate shares.

Price development of the Helvetia share since the end of August (Source: www.cash.ch)
The analyst, who worked for the Berenberg Bank, looked back with a happy hand. Less than 48 hours before the Raiffeisen exit became known, he downgraded the Helvetia share from "buy" to "hold" and hit the price target down to 584 (previously 650) francs.
However, the expert argued less with the emerging shifts in the shareholder than with the more restrained profit outlook of the insurance company. In this context, he reduced his profit estimates by up to 9.7 percent and the dividend forecasts by up to 12.5 percent. For the 2019 financial year, the analyst now expects "only" a dividend of 28 francs per share, which corresponds to a return of 5.4 percent.
Share in the long term an attractive investment
His professional colleague from Baader-Helvea sees in the participation placements a favorable Kaufgelegenheit. With a drop of 5.4 percent, the Helvetia share since the beginning of the year has developed more than 15 percent worse than the Swiss Peformance Index, he writes in a commentary.
The analyst identifies the insurance company as a high-margin company and considers it to be a solid medium to long-term investment. Due to the latent risk that the target of an annual gain of 500 million Swiss francs could not be reached by 2018, the Helvetia share at Baader-Helvea is still classified as "Hold" and a price target of 560 Swiss francs.

Related

Bitcoin Price Forum

Bitcoin Price Forum The main Bitcoin discussion forum, includes subforums for technical support,

Foreign Shares - How do I claim tax on f

Claudio from Zurich is a private investor. He is not a stock exchange

Seehofer fears '' ghetto formati

According to CSU boss Horst Seehofer, with a union government after the Bundestag

+++ Exchanges Ticker +++ - SMI will cont

08:05 According to the pre-market indicators of Bank Julius Baer, ​​the Swiss Market