OHLA - comment

OHLA’s successful consent solicitation allows the working capital requirement of €40m for the Services business to be provided by new lenders. It also facilitates the sale of that business. OHLA is focused on the core construction business, which is increasingly focused on civil projects. Getting some cash for the increasingly marginal Service business is rational. The payment of 0.25% to bondholders for the consent is a nice present, a sale for our estimate of €85m would be a much bigger deal. Whilst there is no guarantee a sale of the Services business will emerge, the intentions are clear. 

OHL Ingesan generated €11.5m in EBITDA in FY22 (on €394m of sales) => EV of €85m (€40m of working capital debt reduction and €45m of cash in). No sale has been announced yet.