Employee Benefits attraction - assessing private equity interest in Edenred vs Pluxee

Research evidence excerpt

Employee Benefits attraction - assessing private equity interest in Edenred vs Pluxee

xecution. This is the reason why BC Partners is looking for a co-bidder.

Regulatory pressure

Regulatory risk is another key hurdle. Commission caps and potential sanctions remain key concerns for investors. Commissions

have been capped, for example in Italy and Brazil, but the regulatory framework remains bumpy, with the introduction of open-

loop schemes in countries such as Brazil. More broadly, the business model appears to be under greater scrutiny today, with

several ongoing investigations into potential collusion, including in Chile and Italy. Edenred proactively filed for leniency when

management learned about investigations and cooperated fully, which should result in no financial penalty (vs. a potential €34m

fine for Pluxee).

Growth visibility is therefore limited: the regulatory frameworks in Italy and Brazil seem fully stabilized. In France, a draft bill was

published on 9 June (link). Nevertheless, the market may continue to apply a blanket discount to the sector.

Would the Bellon family be willing to sell its stake in Pluxee?

In Pluxee’s case, the shareholder structure adds another dimension, as the Bellon family’s position is central to any strategic

move. Via Bellon SA holding, the family owns 46.2% of capital and c.62.3% of voting rights. The question is whether keeping

Pluxee listed still makes sense given the depressed valuation. Nevertheless, a delisting is still more unlikely: Pluxee has only

been listed for two years, and we assume it is still too early to consider such a move, especially as the holding company has

recently increased its debt to buy back its stake in Sodexo and to purchase shares in both Sodexo and Pluxee. Furthermore, the