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Prysmian considers US listing as Encore consolidation lifts quarterly profit
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Prysmian considers US listing as Encore consolidation lifts quarterly profit
Oct 31, 2024 3:37 AM

*

Company to decide on dual listing in "next couple of

months"

*

Also looking at the industrial business of Nexans

*

Quarterly core profit boosted by Encore Wire consolidation

*

Capital markets day to be held in New York on March 26

(Recasts with potential US listing, adds CEO quote in paragraph

3, details on Nexans in paras 4-5, context in paras 6-10)

By Alessandro Parodi and Philippe LeroyBeaulieu

Oct 31 (Reuters) - Prysmian is considering a

dual listing in the United States and will make a decision in

the next two months, its chief executive said on Thursday, as

the consolidation of Encore Wire boosted the Italian cable

maker's quarterly profit.

The Milan-listed company completed the acquisition of the

U.S.-based electrical components and equipment maker in July, in

a $4.2-billion deal aimed at bolstering its position in North

America, its second largest market where a Wall Street listing

could help it attract further investment.

"After the acquisition of Encore Wire we thought that we

have now all the conditions to think and to analyse this option,

we have a significant exposure in revenue and we have an even

larger exposure in terms of EBITDA", CEO Massimo Battaini told

journalists.

The world's largest cable maker is also considering buying

the industrial business unit of French fiber-optic peer Nexans

, Battaini added.

"There are no discussions between Nexans and Prysmian at

this time on selling our industrial business unit," a Nexans

spokesperson told Reuters.

Prysmian will hold its capital markets day on March 26 in

New York, when it will give further details of the potential

listing, and also announce new financial targets.

It said it expects 2024 full-year adjusted core profit

(EBITDA) of between 1.90 billion and 1.95 billion euros

($2.06-2.12 billion), with free cash flow in the range of 840

million to 920 million euros.

That confirms upgraded guidance published by the company in

August, which envisioned a positive impact from the Encore

acquisition of about 200 million euros on full-year EBITDA.

Third-quarter adjusted EBITDA rose 32% year-on-year to 540

million euros, roughly in line with a company-provided poll of

analysts.

Growing sales in its transmission, power grid and industrial

consumption segments offset weaknesses in its specialties

segment, which the company said had dropped by 7% from a year

earlier due to a slowdown in the auto market.

($1 = 0.9212 euros)

(Additional reporting by Gianluca Lo Nostro; Editing by Shri

Navaratnam and Clarence Fernandez, Kirsten Donovan)

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