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Empir: An eventful quarter behind the scenes - ABG

Sells shares in Xavi Solutionnode
Additional restructuring proposed in Q4
EGM scheduled for 23 November

On 30 August, Empir announced that it had sold 6.1m shares in Xavi Solutionnode for SEK 1.46 per share to seven different buyers. The purchase price of SEK 8.9m was paid in cash and took Empir’s holding in Xavi Solutionnode to 31.8%, turning it from a majority to a minority holding. In terms of revenue recognition, it means that Empir will no longer include Xavi Solutionnode in its financial statements, instead having a one-line item of contribution from them. It will also lead to a capital gain of SEK 17m that will be reported in the Q3 report. This change of structure is the basis of our large estimate revisions.

All of the proposed changes announced by the company in October will need to be approved by an extraordinary general meeting that will be held on 23 November at 15.00 CET. With the remaining business volume, we think the company will have a hard time carrying its overhead costs during our forecast period.
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