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).
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876813 19-Sep-2019
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(END) Dow Jones Newswires
September 19, 2019 10:18 ET (14:18 GMT)
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