Edison Investment Research Limited Edison Investment Research Limited: Edison issues flash on FinLab (A7A) 19-Sep-2019 / 15:17 GMT/BST London, UK, 19 September 2019 Edison issues flash on FinLab (A7A) Deposit Solutions, FinLab's largest fintech holding (which until recently made up nearly 30% of its NAV), has completed a new funding round with Deutsche Bank, which acquired a c 4.9% stake in the business. Although the deal volume is relatively small (and may be partially non-cash), we note that the transaction values Deposit Solutions at more than EUR1.0bn, which means it has now reached 'unicorn' status (ie a privately held company valued in excess of US$1.0bn) and has become one of the most highly valued fintech companies in Germany. We estimate that this translated into a significant write-up of FinLab's c 7% stake of over EUR40m (c EUR7.6/share). FinLab's NAV at end-June 2019 stood at EUR20.21. Based on yesterday's closing price of EUR17.30, this implied a c 14% discount to its NAV. After accounting for the revaluation of its stake in Deposit Solutions (representing at least EUR7.6 per share) and marking to market the value of the company's only listed holding (Heliad Equity Partners), we arrive at a current NAV of EUR28.80 per share. This translates into a c 40% discount to NAV (although we note that FinLab's share price is significantly higher today). Click here [1] to view the full report. Subscribe [2]to Edison's content to receive reports by email. All reports published by Edison are free-to-access and available on the website [3]. About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority [4]. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Milosz Papst, +44 (0)20 3077 5700 financials@edisongroup.com [5] Learn more at www.edisongroup.com [6] and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-group- [7] Twitter www.twitter.com/Edison_Inv_Res [8] YouTube www.youtube.com/edisonitv [9] Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. End of Announcement - EQS News Service 876813 19-Sep-2019 1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=0cf323e525e73b24983a73a52ea4b2e5&application_id=876813&site_id=vwd&application_name=news 2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=dc4b6da9609a3fa15934b7007f0912b2&application_id=876813&site_id=vwd&application_name=news 3: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=2d62d350e44141e01d1766d8ed0b3f95&application_id=876813&site_id=vwd&application_name=news 4: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=105fe9be9b5e36892886e5a39d51d4b7&application_id=876813&site_id=vwd&application_name=news 5: mailto:financials@edisongroup.com'subject=Re:%20Palace%20capital 6: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=88c95533002fab2316572f9ef6cf3cc6&application_id=876813&site_id=vwd&application_name=news 7: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=afe662765000a80ab72afd922939c992&application_id=876813&site_id=vwd&application_name=news 8: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=ec2d264fe4f303e2143a2e85c6eaa823&application_id=876813&site_id=vwd&application_name=news 9: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=6b959e4d7ee3c402b931a274d2bbe945&application_id=876813&site_id=vwd&application_name=news
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September 19, 2019 10:18 ET (14:18 GMT)