Boparan - thesis scrapped

All,

Please find our updated analysis of Boparan here.

As previously written, were disappointed to hear on the call that the company had now arranged pass-through language on 78% of its Protein sales. Since our thesis of recovery was principally based on the recovery of gross margin given up in 2017 and 2018, we have had to significantly reduce our EBITDA expectations for next year.

Moreover, our disappointment runs counter to the price development in the bonds over the last month, as the market seems to become increasingly bullish about the shareholder contributing real estate assets (the plant, 2 Agriculture) in a bid for an extension. In our view however, it is too early to price in such contributions and we would not be surprised at all if those bonds came tumbling down again.

In the meantime we will be watching from the side-lines.

Wolfgang