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DistIT: Rights issue to address key milestones ahead - SEB

Q4 results were well-below our and consensus’ forecasts. DistIT Group also announced a fully guaranteed rights issue, grossing SEK 98m, and which will solve several investor concerns including the decided, but not yet paid-out, DPS for 2021; as well as the pending payment of a SEK 140m earn-out relating to its Efuel acquisition. Based on revised earnings we set our mid-point value at SEK 45 (60), equal to SEK 26 based on the TERP (post-RI).

Q4 results were well-below our and consensus’ forecasts. DistIT Group also announced a fully guaranteed rights issue, grossing SEK 98m, and which will solve several investor concerns including the decided, but not yet paid-out, DPS for 2021; as well as the pending payment of a SEK 140m earn-out relating to its Efuel acquisition. Based on revised earnings we set our mid-point value at SEK 45 (60), equal to SEK 26 based on the TERP (post-RI).
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