Adler - comment

Adler made an effort to present itself openly with a 2h Q&A today. The presentation reveals a more progressed KKR transaction than previously feared. Although we had been confident that it would close eventually, we had not been expecting a piece-meal transfer of the assets - apparently held back by local rights of refusal. What we feel we know is that the cash balance is real, that the assets are there and that even if some of them need a significant write-down, they still imply significant equity coverage. I’ve been on annual leave the last days (bad timing) and will pour over more of it in the coming days. One thing to take away from the call is the potential of Adler suing amongst others Aggregate over the sale of Consus. On the basis of what has been revealed so far, this does not sound immediately plausible, now would there likely be much to gain from it, but it deserves some scrutiny.