Original-Research: USU Software AG (von NuWays AG): Verkaufen

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Original-Research: USU Software AG - from NuWays AG

Classification of NuWays AG to USU Software AG

Company Name: USU Software AG

ISIN: DE000A0BVU28

Reason for the research:

Recommendation: Verkaufen

from: 24.04.2024

Target price: EUR 18.50

Target price on sight of: 12 Monaten

Last rating change:

Analyst: Philipp Sennewald

Higher than expected offer price still way below intrinsic value

Yesterday, USU announced to have reached a delisting-agreement with AUSUM

GmbH (Udo Strehl) and NUNUS GmbH, a wholly owned subsidiary of AUSUM. While

AUSUM already holds 53.7% of voting rights in USU, NUNUS currently does not

hold any shares. On the basis of the agreement, NUNUS will offer the

shareholders of USU approximately EUR 18.50 per share in the context of a

voluntary public delisting offer. USU will submit an application to revoke

the admission of the shares to the regulated market as well as all OTC

markets already before the end of the offer period.

Mind you, in an initial statement on the intention to delist on March 12th,

it was stated that the offer price

should be expected to be equivalent to the statutory minimum price, e.g.

the volume-weighted average

price of the past six months. According to our calculations, this would

have resulted in an offer price of EUR 17.00 per share.

While the actual offer price is now seen to be some 9% above our and

markets expectations, it is still way below the intrinsic fair value of EUR

30, according to our DCF valuation model (2.5% LT growth, 7.6% WACC, 12.5%

TY EBIT margin).

Our view: Although EUR 18.50 is still not a fair offer (eNuW), we advise

investors who have no intention of being invested in a highly illiquid

asset to tender their shares once the delisting offer has been made. While

we previously advised investors to HOLD the stock in anticipation of a

higher-than-expected offer, we now change our recommendation to SELL at an

increase PT of EUR 18.50, as we do not expect anymore upside. Yet, given the

vast discount to the intrincis value, the case might be of interest for

special situation investors, who are eyeing for a potential squeeze-out at

a later stage.

You can download the research here:

http://www.more-ir.de/d/29511.pdf

For additional information visit our website

www.nuways-ag.com/research.

Contact for questions

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.

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The issuer is solely responsible for the content of this research.

The result of this research does not constitute investment advice

or an invitation to conclude certain stock exchange transactions.

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