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Ngenic: A value accretive divestment of a non-core business segment - Redeye

Redeye comments on Ngenic’s intention to divest its subsidiary Ngenic Sweden AB to Nordic Propeye for a total consideration (EV) of SEK12m-14m. We consider the purchase fee attractive, which is largely in line with the divested company’s net sales in 2023 (SEK14m). Furthermore, we understand that around 25 FTE of Ngenic’s total 64 FTE could follow the acquired company to Nordic Propeye. As such, we reduce our OPEX assumptions going forward by almost as much as we reduce our expected sales figures - which slightly positively impacts our EBITDA estimates. We also incorporate the purchase fee of SEK12m-14m, which, at this time, comes in handy for Ngenic.

Redeye comments on Ngenic’s intention to divest its subsidiary Ngenic Sweden AB to Nordic Propeye for a total consideration (EV) of SEK12m-14m. We consider the purchase fee attractive, which is largely in line with the divested company’s net sales in 2023 (SEK14m). Furthermore, we understand that around 25 FTE of Ngenic’s total 64 FTE could follow the acquired company to Nordic Propeye. As such, we reduce our OPEX assumptions going forward by almost as much as we reduce our expected sales figures - which slightly positively impacts our EBITDA estimates. We also incorporate the purchase fee of SEK12m-14m, which, at this time, comes in handy for Ngenic.
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