USU Software AG Plans Delisting, NuWays AG Adjusts Recommendation to HOLD

USU Software AG has announced plans to delist from the stock exchange, a decision that has been met with concern from investors. In an ad-hoc statement, USU Software revealed that it had the support of its supervisory board and had consulted AUSUM, its majority shareholder, about making a delisting offer. AUSUM, holding 51% of voting rights and led by founder Udo Strehl, is in advanced negotiations to finance such an offer. The expected offer price should be around €17.00 per share, aligning with the statutory minimum price based on the past six months' volume-weighted average price.

In a recent conference call, CEO Oberschmidt cited the stock market's "sustained undervaluation" of USU Software as the primary reason behind the delisting decision. This undervaluation, he argues, hampers the use of shares as a means for value-accretive mergers and acquisitions. Despite a profit warning in August leading to a drop in share value, the company plans substantial investments to expand its product business post-delisting. Specifics on these investments and potential external partnerships remain undisclosed, being described as in a "very early stage".

NuWays AG, observing these developments, notes agreement with the management's assessment of share undervaluation, maintaining an intrinsic fair value of €30 per share. However, NuWays advises investors seeking liquidity to consider tendering their shares once the delisting offer is made. Consequently, NuWays has revised its recommendation for USU Software AG to HOLD and adjusted its price target to €17.