Nidda - comment

The sale/IPO might be back on with banks pitching debt packages for a potential buyout. The valuation of €10bn is in line with the previous IPO estimates from 2022. According to the press, banks are structuring a debt package for 60% of the cost. If so, it would be a remarkable turnaround for HY. A Private Equity buyout would likely adopt the same acquisitive strategy, so investors would have to be willing to see more debt put on top. The Russian business (15% of the total) is not subject to sanctions and is locally financed, but Nidda may carve it out from a sale to simplify any buyout. An IPO or sale to an industry buyer might see a cleaner exit for Banin and Cinven.