H1 20 figures; a bit late indeed
H1 20 figures; a bit late indeedEARNINGS/SALES RELEASES
The company just released its H1 20 report, closing 30 June 2020. A bit late indeed. Valuation stands between zero and “something”.
FACT
Shareholders equity was €-860,000 at the FPN level (the listed company, the latter having no subsidiary now).
Gross debt pro forma (pro forma from Pamier’s disposal) was €1m vs. a gross cash of c. zero.
FIPP will fuel the company through November 2021 via another shareholder loan.
No major news was available from minority shareholders about a potential claim challenging Pamier’s disposal to reference shareholder (FIPP), the latter controlling 100% of the Board.
ANALYSIS
FPN released its H1 20 figures nine months or so after closing in 30 June 2020. It did the same for the FY 19 annual report as the 2019 AGM took place in December 2020.
The key shareholder, controlling 100% of the Board (FIPP), announced it will fuel the company through November 2021: a bankruptcy is therefore unlikely. As an empty shell, the cash burn would be €0.2m per annum.
FPN is now an empty shell. It’s value would lean on its potential SPAC status only on top of claims’ issue, as a listed but empty company. Empty but… maybe subject to one major claim from minority shareholders. The latter could embarass potential buyers and we believe that the situation could stay blocked for some time unless both parties agree a compromise.
IMPACT
No material additional information was provided vs. what was public about Pamier SARL (its major asset) and its full takeover bid by FIPP (Mr Dumenil) in October 2020. We still wait for a reaction from Mr Ott but nothing was observable to date from a legal point of view. We wait for such a reaction to provide an indication about FPN’s forward value. The latter stands between zero and “something” as developed in our latest piece of research of 3 November 2020 (”In a surprise move, FIPP has deprived FPN shareholders of control over PAMIER SARL”).
In H2 21, we will revise our asumption in the light of the FY 20 figures. Our target should be updated in a range of zero to “something” in light of the potential claims’ declarations.
Fonciere Paris Nord SA. Fonciere Paris Nord SA, formerly ADT SIIC SA, is a France-based investment company primarily engaged in the activities related to the acquisition and management of real estate. It has a portfolio of assets comprising various types of buildings, such as offices, commercial and residential buildings. The Company's real estate assets are located in Paris and the Paris suburbs, among others. As of December 31, 2011, the Company operated through subsidiaries, including Compagnie Financiere Fonciere et Immobiliere-CFFI, Maintreuil and Pamier. In June 2013, it sold its stake in Venus to FIPP.
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