Atalian - comment

Equity issuance dominated the questions on the Atalian 22Q1 conference call. Management did say it has signed an NDA with a financial partner but would say little more. Completion of the exercise may not be before the company reports Q2 results at the end of July, this gives Atalian until the end of August to hit the “by summer” promise. Atalian expects H2 will be stronger margin wise, so why rush the fence in selling? 

We have also questioned how much control the Julian family would be willing to give up. The recently announced (but not completed) deal for Towerbrook to take a majority of the equity in Groupe GSF, whilst leaving the owning family with meaningful participation in the governance of the business might offer a way for more of Atalian to be sold. So far there is no public detail on the GSF deal will be structured.