Swedish Stirling: Revising near-term fundamentals after aborted preference share issue - Emergers
This is a third party research report and does not necessarily reflect our views or values
With the planned preference share issue cancelled with reference to market conditions, Swedish Stirling is now returning to its original business model of being a system provider rather than an energy converter. As a consequence the deal with Glencore will now need to be renegotiated and combined with the already halted negotiations with Samancor, this means that near-term visibility has deteriorated significantly. While the industrial and technical case remains intact, our best guess is that this pushes ramp-up at least a year into the future. We now find support for a new fair value of SEK 9–12 (SEK 15–22) per share in 12-24 months.