^Original-Research: USU Software AG - from NuWays AGClassification of NuWays AG to USU Software AGCompany Name: USU Software AGISIN: DE000A0BVU28Reason for the research: UpdateRecommendation: HOLDfrom: 14.03.2024Target price: 17.00Target price on sight of: 12 MonatenLast rating change: Analyst: Philipp SennewaldDelisting intention a punch in the face for investors On Tuesday evening, USU Software published an ad-hoc stating the intentionto delist the company from the stock exchange. Here is what you need toknow: Supported by the supervisory board, the management board of USU aims todelist the company. In order to do so, management consulted majorityshareholder AUSUM (51% of voting rights), the investment vehicle of founderUdo Strehl, whether it would be prepared to make a delisting offer, whichis the prerequisite for delisting a company that is listed in the primestandard. On Tuesday, AUSUM informed the management that it is seeking an agreementto finance such an offer and that the respective negotiations are in anadvanced stage. Moreover, AUSUM informed the company that the offer priceshould be expected to be largely in line with the equivalent to thestatutory minimum price, e.g. the volume-weighted average price of the pastsix months, in accordance with section 39 of the German Stock Exchange Act.According to our calculations this should result in an offer price of c. EUR17.00 per share (EUR 16.97 according to Bloomberg). During yesterday's conference call, CEO Oberschmidt stated that the mainreason for the decision was the "sustained undervaluation" of USU by thestock market, which among others would make it difficult to use the sharesas M&A currency in a value accretive manner. In our view, this argument isat least questionable as shares only dropped to current levels followingthe company's profit warning in August. Moreover, management stated that itis seeking substantial investments in order to considerably expand itsproduct business following the delisting. To finance this, management aimsto carve out the product business and get an external partner on board.However, management did not provide any details on the exact nature of sucha partnership, stating that the process is in a "very early stage". Our view: We agree with management regarding the undervaluation of theshares and reiterate our intrinsic fair value of EUR 30 per share. However,we advise investors who have no intention of being invested in a highlyilliquid asset to tender their shares once the delisting offer has beenmade. For the time being, we change our recommendation to HOLD and reduceour PT to EUR 17.You can download the research here:http://www.more-ir.de/d/29159.pdfFor additional information visit our websitewww.nuways-ag.com/research.Contact for questionsDie Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: www.nuways-ag.com/research.NuWays AG - Equity ResearchWeb: www.nuways-ag.comEmail: research@nuways-ag.comLinkedIn: https://www.linkedin.com/company/nuwaysagAdresse: Mittelweg 16-17, 20148 Hamburg, Germany++++++++++Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.++++++++++-------------------transmitted by EQS Group AG.-------------------The issuer is solely responsible for the content of this research.The result of this research does not constitute investment adviceor an invitation to conclude certain stock exchange transactions.°