Alstom: Executes Share Capital Increase Supporting Deleveraging Goals; Lower Fair Value to EUR 20.90

Narrow-moat Alstom has launched a share capital increase of approximately EUR 1 billion with preferential subscription rights, as part of its final step in a EUR 2 billion deleveraging plan. This initiative allows existing shareholders to subscribe to new shares at a ratio of one new share for every five existing shares, priced at EUR 13 per new share, a 29% discount to the current market value. Consequently, we are reducing Alstom’s fair value estimate to EUR 20.90 from EUR 21.70 to account for the higher-than-expected discount.