Publity AG considers extensive, non-cash value adjustment requirements due to the planned restructuring of the PREOS convertible bond to be probable
November 15, 2023 at 12:51 pm EST
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EQS-Ad-hoc: publity AG / Key word(s): Investment/Miscellaneous
publity AG considers extensive, non-cash value adjustment requirements due to the planned restructuring of the PREOS convertible bond to be probable
15-Nov-2023 / 18:50 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Publication of an inside information pursuant to Article 17 of Regulation (EU) No. 596/2014
THE INFORMATION CONTAINED IN THIS DOCUMENT IS NOT FOR PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO, WITHIN OR FROM THE UNITED STATES OF AMERICA OR ANY OTHER COUNTRY WHERE SUCH PUBLICATION OR DISTRIBUTION WOULD BE IN VIOLATION OF THE RELEVANT LEGAL REQUIREMENTS OF THAT COUNTRY.
publity AG considers extensive, non-cash value adjustment requirements due to the planned restructuring of the PREOS convertible bond to be probable
Impairment requirement of EUR 200-250 million in total likely
Net loss for 2023 of EUR 200-250 million likely due to impairments
Total assets expected to be between EUR 230 - 280 million, robust equity base forecast at the end of 2023 with equity ratio of 40-60% even in the event of impairments
Asset Management business develops in line with expectations
Frankfurt am Main, November 15, 2023 - The Executive Board of publity AG ("publity", ISIN DE0006972508) has adjusted the annual forecast for 2023 in view of the planned restructuring of the 2019/2024 convertible bond of the Group subsidiary PREOS Global Office Real Estate & Technology AG ("PREOS") due to the possible resulting effects. Accordingly, publity assumes with a high degree of probability that the company may have to recognize extensive, non-cash impairments in the current year. This would affect both the valuation of the PREOS convertible bond in the publity balance sheet and the valuation of the equity investment in PREOS. According to current estimates, the total impairment requirement would amount to around EUR 200-250 million. Accordingly, publity considers a net loss of around EUR 200-250 million to be probable for the current financial year. This is not expected to have any significant impact on the company's cash and cash equivalents at the end of the year. publity AG's total assets according to HGB accounting would amount to around EUR 230-280 million at the end of 2023 even in the event of the aforementioned value adjustments and the net loss for the year. This would correspond to a robust equity ratio of 40-60%. The Executive Board of PREOS plans to convene a vote without a meeting of bondholders on the restructuring of the PREOS Convertible Bond 2019/2024. This is to take place before December 9, 2023 and is to decide, among other things, on the creation of a conversion right for the issuer (mandatory conversion), the retroactive termination of interest on the Convertible Bond 2019/2024 and the reduction of the conversion price to EUR 4.50. publity's operating asset management business is developing in line with expectations in 2023.
End of Inside Information Information and Explanation of the Issuer to this announcement:
Press Contact:
Finanzpresse and Investor Relations:
edicto GmbH
Axel Mühlhaus
Phone: +49 69 905505-52
Mail: publity@edicto.de
15-Nov-2023 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com
Publity AG is a Germany-based real estate investment company with focus on commercial and office properties in German metropolitan areas, such as Frankfurt am Main, Cologne, Hamburg, Leipzig, Essen and Munich. The Company offers closes real estate funds, such as publity Performance Fonds Nr. 6, publity Performance Fonds Nr. 7, publity Performance Fonds Nr. 8.
PUBLITY AG 
