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    ARYN   CH0043238366


Real-time Estimate Quote. Real-time Estimate Cboe Europe - 07/30 06:21:35 am
1.178 CHF   +1.12%
06/02ANALYST RECOMMENDATIONS : Bank of America, Bodycote, Chevron, Dow Inc, Ferguson...
06/01ARYZTA : Hires Nestlé Executive as CFO
06/01ARYZTA : Fiscal Q3 Revenue Dips Over 3%
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Novartis's Alcon spinoff ousts Baer from Swiss benchmark SMI

04/03/2019 | 05:46am EDT
FILE PHOTO: Logo of Swiss pharmaceutical company Novartis is seen in Hueninge, France

ZURICH (Reuters) - Novartis's spinoff of its eyecare division Alcon, set for Tuesday April 9, marks the largest Swiss stock deal in a decade and forces a reshuffle of the benchmark Swiss Market Index (SMI) as private bank Julius Baer gets booted out.

Novartis has estimated Alcon's value at around 25 billion Swiss francs (19.06 billion pounds), while some analysts predict an initial market capitalisation of 21 billion francs ($21 billion) to 23 billion, implying shares worth from 43 to 47 francs.

By contrast Baer's value has tumbled by a third in a year to 9.3 billion francs. It will instead be included in the SMIM index, replacing Aryzta, SIX Swiss Exchange said after Tuesday's market close.

Dominated by Nestle, Novartis and Roche, the SMI is Switzerland's most important index. Membership is based on market capitalisation, adjusted for the free float of readily tradable shares in its constituents.

Alcon is being spun off in a one-for-five share deal announced by Novartis last June as it focuses on new drugs rather than the surgical devices and contact lenses Alcon makes.

Joining the SMI may boost demand from funds focusing on the top Swiss companies. Yet Alcon's inclusion means healthcare and medical technology will weigh even more heavily on the SMI.

Novartis's weighting had been capped 18 percent, but with Alcon the two will account for up to 21.5 percent of the SMI, Zuercher Kantonalbank analysts estimated on Wednesday.

Novartis's biggest owners - BlackRock, the Sandoz family, Capital Research Global Investors and Vanguard Group - will have similar holdings in Alcon, between 2.5 percent and 4.5 percent.

"We anticipate incremental buying of Alcon shares by some funds seeking to build a full-size position, offset by others not wanting to own a non-pharma eyecare company," Jefferies analyst Peter Welford said.

Novartis bought Alcon's eye surgery and contact lens portfolio in stages through 2010 for $52 billion from Nestle, only to see it lose ground to competitors as sales and profitability slipped.

In surgical equipment, Alcon competes against Johnson & Johnson, Germany's Zeiss and Bausch in a $9 billion per year market. Rivals in vision care, worth $14 billion annually, include J&J, Cooper and Bausch.

In 2016, a new Alcon head, Mike Ball from Hospira, redoubled research and marketing spending to resurrect revenue, before Novartis chief Vas Narasimhan decided to shed the division.

The last comparable-sized Swiss listing was in 2010, when oil driller Transocean floated on the same day its Deepwater Horizon rig exploded in the Gulf of Mexico.

(Editing by David Holmes)

By John Miller and Paul Arnold

© Reuters 2019
Stocks mentioned in the article
ChangeLast1st jan.
ALCON INC. -0.06% 65.9 Delayed Quote.12.03%
ARYZTA AG 0.34% 1.169 Delayed Quote.70.82%
BAUSCH HEALTH COMPANIES INC. -0.41% 36.87 Delayed Quote.39.61%
DEERE & COMPANY 1.76% 359.8 Delayed Quote.31.41%
JOHNSON & JOHNSON 0.00% 172.18 Delayed Quote.9.40%
JULIUS BÄR GRUPPE AG 0.07% 60.02 Delayed Quote.17.65%
LETS HOLDINGS GROUP CO., LTD. 0.32% 6.22 End-of-day quote.-20.05%
LOOK HOLDINGS INCORPORATED 0.28% 1412 End-of-day quote.47.54%
NOVARTIS AG 0.14% 83.64 Delayed Quote.-0.16%
SGS AG -0.41% 2926 Delayed Quote.10.07%
SMI -0.17% 12066.79 Delayed Quote.12.92%
SWISS RE LTD -3.14% 82 Delayed Quote.1.70%
VISION INC. 1.67% 1098 End-of-day quote.5.98%
All news about ARYZTA AG
06/02ANALYST RECOMMENDATIONS : Bank of America, Bodycote, Chevron, Dow Inc, Ferguson...
06/01ARYZTA : Hires Nestlé Executive as CFO
06/01ARYZTA : Fiscal Q3 Revenue Dips Over 3%
05/04ARYZTA : Wraps Up Sale of North American Business
05/04ARYZTA : completes the disposal of its North American business
05/04PRESS RELEASE : ARYZTA AG completes the disposal of its North American business
05/03Lindsay Goldberg LLC acquired North American business in the USA and Canada o..
05/03Lindsay Goldberg LLC completed the acquisition of ARYZTA North America from A..
04/01ENVICTUS INTERNATIONAL : to Sell Malaysian Property, Factory to Aryzta for Over ..
03/31BELL FOOD : Unit to Buy Swiss Sandwich Business From Aryzta
More news
Sales 2021 1 527 M 1 817 M 1 817 M
Net income 2021 -150 M -179 M -179 M
Net Debt 2021 641 M 763 M 763 M
P/E ratio 2021 -8,59x
Yield 2021 -
Capitalization 1 072 M 1 276 M 1 276 M
EV / Sales 2021 1,12x
EV / Sales 2022 0,92x
Nbr of Employees 15 213
Free-Float 99,8%
Duration : Period :
ARYZTA AG Technical Analysis Chart | ARYN | CH0043238366 | MarketScreener
Technical analysis trends ARYZTA AG
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 7
Last Close Price 1,08 €
Average target price 1,05 €
Spread / Average Target -2,55%
EPS Revisions
Managers and Directors
Urs Jordi Non-Executive Chairman & Chief Executive Officer
Irishman John Heffernan President & Chief Commercial Officer
Jonathan Frederick Solesbury Chief Financial Officer
Alejandro Legarda Zaragüeta Independent Non-Executive Director
Luisa Deplazes de Andrade Delgado Lead Independent Director
Sector and Competitors
1st jan.Capi. (M$)
ARYZTA AG70.82%1 276
GRUPO BIMBO, S.A.B. DE C.V.8.09%10 540
TOLY BREAD CO.,LTD.-35.66%3 999