Rekeep - comment

Following the Q2 conference call, management stated they were looking at options to refinance the bonds, including the sale of assets or disposals of equity investments.  We focused mainly on selling the Laundering & Sterilisation division but press reports now state that Rekeep is in exclusive talks to sell its energy arm.   Rekeep does not report this division separately and is contained in their Facilities Management segment so we have to rely on press reports for potential valuation.  The press report assigns a value of over €250m but we have no way of clarifying. 

This press report confirms management comments from the Q2 call to deleverage by asset sales, with any sales proceeds to be used for debt repayment.  With limited senior debt ahead of the bonds, the €370m bonds will rally on any confirmation of a process.  The company did not return our calls this morning.