The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Suez transformed by Fortis sell-off

Issuer: France Telecom Size: e16 billion Bookrunners: ABN Amro Rothschild, Goldman Sachs, BNP Paribas

Fortis share price

Source: Reuters

French conglomerate Suez had another busy month in the equity markets as it took advantage of a rally in the insurance sector to dispose of almost all its holdings in Fortis, the Belgian/Dutch bancassurer. The innovative disposal, managed by UBS, took the form of a combined mandatory exchangeable and block trade. It achieved a number of firsts and broke a number of records.   The e1.19 billion three-year mandatory exchangeable into 75 million Fortis shares is the second largest mandatory exchangeable in Europe ever, after the Allianz/Miles deal in December 2000, also managed by UBS. It was fully underwritten at an issue price of e15.30 and offered a coupon of 4.5% and an exchange premium of 31%.

The mandatory was structured with two innovative features. It has a rare issuer call option that will allow Suez to force an early exchange if the Fortis share price goes above 120% of the exchange price, giving Suez the chance to benefit more if Fortis shares do well.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree