First Berlin Equity Research has published a research update on PSI SE (ISIN: DE000A0Z1JH9). Analyst Simon Scholes reiterated his ACCEPT THE OFFER rating and maintained his EUR 45.00 price target.

Abstract
H1/26 results published on 31 July were promising, with the key Grid & Energy Management business unit (ca. 50% of H1/26 sales) reaching the long-targeted double digit adjusted EBIT margin. The profit warning issued on 21 August stemmed mainly from the impact of the current weakness of the European steel market on PSI’s Process Industries & Metals (PIM) business unit. PIM houses the world’s leading software for metals processing business. Our view of the long-term value of this operation is little changed by what is presumably a temporary downturn in European ordering. The German authorities gave regulatory approval for the Warburg Pincus takeover in early July. Shareholders who tendered their shares have received the offer price of €45 per share. Warburg Pincus and persons acting jointly with the bidder now hold over 80% of all outstanding PSI shares. An offer will be made to remaining shareholders in connection with the delisting of the shares from the Frankfurt stock exchange. We expect this to happen before year-end. For a delisting offer, the minimum consideration must be at least the higher of two prices: the six-month volume-weighted average price (VWAP) prior to the offer’s announcement, or the highest price paid by the bidder in the six months prior to the offer document’s publication. This indicates the delisting offer will be very close to the original offer price. The shares are likely to remain listed in Hamburg, but the quantity of information on the development of the business will fall markedly as the listing will no longer be Prime Standard. For this reason we recommend shareholders to accept the delisting offer.