Green light given to Parques Reunidos delisting

On the 11/28/19 at 3:47PM


Adrien Paredes-Vanheule

The CNMV on 28 November authorised the delisting of all shares of Parques Reunidos Servicios Centrales, the second largest leisure park operator in Europe.
Movie Park in Madrid

Parques Reunidos, which operates a portfolio of more than 60 leisure parks worldwide welcoming 20 million visitors every year, is to be removed from Spanish stock exchange listings. The CNMV approved the company's application made on 25 November for the delisting of all of its shares from the Barcelona, Bilbao, Madrid and Valencia stock exchanges.

Parques Reunidos, whose market capitalisation was estimated at €1.1bn on 27 November, is owned since September by Piolin BidCo - a company formed by EQT, Corporación Financiera Alba and GBL. A purchase order which began on 30 September 2019 and will end on 2 December 2019, at the price of 13.753 euros per share, equivalent to the price of the previous bid submitted by Piolin Bidco. Then the shares will be suspended from trading once the purchase order completed.

Parques Reunidos was established 50 years ago and is considered as one of the top ten largest leisure park operators worldwide.

Eighth delisting on Spanish stock exchange in 2019

Delistings additionned to IPOs' scarcity remain a huge concern for the CNMV. Seven other Spanish companies have been delisted so far in 2019. Recently, Rodrigo Buenaventura, director of general markets at the Spanish financial watchdog, expressed concerns about the issue.

"We do observe less IPOs indeed. The last big IPO in the Spanish main exchange occurred several months ago [Solarpack in December 2018 with a market cap of €305.1m, ed]. Moreover, we have seen IPOs being reduced in size or cancelled because market conditions were not favourable enough [No IPO on the main market in the first nine months of 2019, ed]. We are concerned about IPOs’ scarcity.

"At the same time, we have seen half a dozen takeover bids aiming at delisting companies, so far this year. Therefore the number of Spanish listed companies has shrunk. A sign of a healthy market is companies being listed, we are trying to assess whether there is a Spanish specific issue but it is more of a EU-widespread problem. Other reasons, external to the Spanish market, exist for the scarcity of IPOs including effects of the low interest rate environment and private equity channelling a big chunk of liquidity as it provides an alternative to IPOs, preventing companies from being listed," he told Asset News.

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