Main owner Rite Ventures has announced its expected mandatory bid offer for Nelly Group reflecting its holding that increased to 30.11% following the transaction on 26 April. The offer, with an acceptance period running from 10 May to 7 June, is made at SEK 17 per share in Nelly Group, a steep discount to our current mid-point equity value of SEK 34 per share. We arrive at our mid-point equity value based on a WACC of 7.5% and steady-state EBIT margin of 5%.

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