Company: Compleo Charging Solutions
List: XETRA, Frankfurt
Market cap: € 28 MEUR at time of publication
Share price: € 5,25 at time of publication
ESGFIRE average price: € 11,54
Industry: Electric charging solutions
Market size: $25 Billion USD
Since our last update on Compleo and the company’s announcement of insolvency proceedings the market cap has regained almost 500 % going from €6 to €28 million EUR or from €1,12 EUR per share to €5,2 EUR. We purchased some more shares on the 20th of January increasing our position by about 10 % in number of shares for €3 EUR per share. We are ,as of now atleast, very happy we did not panic sell our position during the temporary bottom right after the insolvency announcement.
Compleo today 30/1 2023 reports that they have started a structured process started with the goal of the continuation of the entire Group. IF this indeed suceeds it surely will be a legendary turnaround for the history books HOWEVER be aware that the risk level still remains extremely high.
The company states in the relase that “The interest in our comprehensive offer consisting of charging technologies and associated software solutions is very high.”.
It’s however very difficult to assess the level of interest or how far these discussions / negotiations are going and what it actually will mean for Compleo’s investors.
We see that one or more of the following scenarios are likely to occur during the current process:
1. Compleo sells parts of the entire division of its Software solutions which will fund the company until the other remaining parts of the company becomes profitable.
2. Compleo gets an investor injection of equity financing into the holding company which could be highly dilutive for current investors UNLESS it’s invested as a convertible note with a higher convertible price than today’s share price.
3. The company might be successfull in reclaiming some of its purchase price of its acquisition from E.On which could provide a well needed capital injection of up to €30 million .
4.. The company fails in all discussions and goes bankrupt which will lead to a sell off of assets.
Regardless off which scenario above occurs ,except for number 4, we think that the new management is doing an excellent work in the current restructuring process. Keep in mind that there were quite advanced discussions with more than one interested investor participant even before the insolvency announcement.
We also think the fact that clients and employees remain loyal and the fact that the company on the 20th of january 2023 received a major order worth over € 2 million euro from SachsenEnergie for the supply of AC charging stations and wins the energy supplier’s Europe-wide tender is proof that the company is going in the right direction.
Link to full press release below:
We personally own stocks of the company mentioned above.
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