RE: A shame that ii's control the sp here...13 Feb 2025 10:02
Good morning,
Please find the following research summary for Creo Medical Group plc (AIM: CREO), from Cavendish and Deutsche Numis.
Cavendish (reiterate 70p target price): "Creo Medical has announced it has received the relevant clearances in order to complete the 51% sale of Creo Europe (formerly Albyn Medical) to Micro-Tech, which was originally announced in September 2024. The sale is now completed in escrow, with net cash proceeds of c€30m expected to be received shortly, which will strengthen the group's balance sheet and support investment into the core business. The completion is in line with Creo's anticipated timeframe of 1Q25 and our current forecasts, which anticipated receipt of the cash at the start of the year. We remain positive on the shares and confident in Creo's technology and the benefits it can deliver to patients, care providers and investors."
Deutsche Numis (reiterate Buy recommendation and 45p target price): "In September 2024, Creo Medical announced a strategic partnership with Micro-Tech BV, a wholly owned subsidiary of China’s Micro-Tech and a binding agreement relating to the intended disposal of a 51% stake in Creo Europe (was Albyn Medical). The transaction valued Creo Europe at an equity value of €72m on a cash-free/debt-free basis, a >2x uplift from the €27m paid in 2020. Regulatory clearances have now been received and net proceeds of €30m are expected shortly."
Kind regards,
Phillip
Phillip Marriage
Senior Associate
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