Whitestone Group Acquires 28% stake in Telemis

Whitestone announced that it had reached an agreement to acquire 28.0% of Telemis, making Whitestone the second largest shareholder. Whitestone put down €9.1m for this investment, which implies a total equity value of ~€32.5 for Telemis. With the close of this investment, the group has now successfully invested nearly 75.0% of the €42.0m that was raised in June'24. We welcome this new as by further putting cash to use, Whitestone is reducing ‘cash drag' on its portfolio. We note that management's strong execution across both fundraising and investments led to NAV rising by almost 190% during 1H FY24, from €33.4m to €99.7m. We currently estimate NAVps and TEVps to be €14.5 and €15.4, implying discounts of 11.8% and 16.8%. We reiterate our BUY rating and €14.2 TP.