Dear Sir, dear Madam, dear shareholder,
We live in a world – and a sector – driven by change. Sometimes it is imposed on us, by external regulation, changes in technology, the shift from ownership to usership, and increasing awareness of the environment. And sometimes we deliberately seek it out, aiming to transform reality to our advantage.
In January 2022, ALD announced its intention to embark on a major historical phase in its growth by acquiring LeasePlan. I am thrilled that ALD has now received the main regulatory and antitrust approvals, allowing to proceed with closing. This acquisition is a unique opportunity for ALD to accelerate its strategy and represents a step-change towards becoming the leading global player in sustainable mobility.
Leveraging on complementary capabilities as well as a strong innovative mindset, the combined entity will be ideally positioned to capture sectoral growth with ever greater demand for digitalization and sustainability. With new customer needs constantly emerging in the sustainable mobility ecosystem, we will be in the right place with the right offering and set-up to grasp the exciting opportunities arising.
LeasePlan is the perfect fit for ALD to step-up its development. Thanks to unparalleled client reach, we expect the combined entity to accelerate its growth and achieve at least +6% fleet growth p.a. post-acquisition. Reaping the benefits of scale, it will be ideally positioned to lead the way to net zero and shape the digital transformation of the industry.
All the elements are therefore in place for a highly synergetic combination which would generate EUR 440 million annual run-rate synergies by 2025. With significantly improved operating efficiency, ALD would be even more resilient in the face of headwinds and would provide attractive returns to its shareholders. At closing, ALD will become a regulated entity, with a robust capital structure and stronger access to diversified sources of funding, while the strong support from the main shareholder Societe Generale will continue.
With closing expected in the first quarter of 2023, this acquisition of 100% of the share capital of LeasePlan for a total consideration of EUR 4.5 billion involves both a cash component – financed by the proposed EUR 1.2 billion capital increase in addition to EUR 0.6 billion subordinated debt - and a share component made of shares and warrants issued to LeasePlan shareholders, the former worth 30.75% of combined share capital.
The proposed capital increase with preferential subscription rights allows you to be part of ALD’s strategic transformation and the compelling value creation it will generate. You have therefore the opportunity to participate in a capital increase with preferential subscription rights (PSR) in the amount of EUR 1.2 billion, which will c ontribute to the overall financing of this acquisition. This transaction is supported by Societe Generale, which will underwrite the capital increase and remain ALD’s majority shareholder in the long-term.
Both ALD and LeasePlan teams are excited to start this next phase of our strategic journey and to be able to offer you this excellent opportunity to join us as we move forward.
Thank you for your continued trust and loyalty.
Chief Executive Officer