(News Bulletin 247) – Grenadier Holdings, majority shareholder of Paragon ID, plans to launch a simplified takeover bid at 38.01 euros per share. This price would show a premium of nearly 36% compared to the last quoted price.

After Vlimorin, Keyrus or more recently Balyo, it is now Paragon ID’s turn to be in the running to exit the Paris Stock Exchange. The company specializing in identification solutions announced Monday evening to be the subject of a project concerning a simplified public purchase offer (OPAS) from its majority shareholder.

Grenadier Holdings, which holds 80.25% of the capital and 86.93% of the voting rights of Paragon ID, has in fact indicated its intention to file a takeover bid on the company specializing in identification solutions.

The majority shareholder will offer a price of 38.01 euros per share, a premium of 35.8% compared to the closing price on Friday June 16, of 28 euros per share. Paragon ID stock was suspended from trading on Monday, at the company’s request. The OPAS represents “a 25.1% premium to the volume-weighted average share price over the past 60 trading days,” Paragon ID said in its statement.

“This offer would be in perfect continuity with the strategy deployed by the company and its commitments to its customers and partners and would simplify governance, facilitate compliance of the company’s operations with the norms and standards of Grenadier Holdings while building support for its strategy,” the company adds.

“An interesting offer”

For its part, EuroLand Corporate considers “this offer interesting given the low liquidity of the title and, consequently, the difficulties in materializing the value”. “This is evidenced by the nominal value of the group’s shares, 35 euros, a level not reached for more than three years”, continues Louis-Marie de Sade, the analyst in charge of coverage of the Paragon ID title.

On the Paris Bourse, the quotation of the Paragon ID share resumed sharply. The title soars by 33.71% to 37.44 euros to approach the price of the offer proposed by Grenadier Holdings to minority shareholders. The title had not evolved at such levels since February 2020.

The group’s board of directors, which welcomed the takeover bid, set up an ad hoc committee and appointed Finexsi as an independent expert to rule on the fairness of the offer.

According to the indicative timetable provided by Paragon ID, Grenadier Holdings plans to file its offer with the Autorité des marchés financiers during the month of July 2023. In the event that the regulatory threshold of 90% of the capital is crossed, Grenadier Holdings will implement a withdrawal offer from the company specializing in identification solutions and contactless technologies.

On the stock market for 9 years

If the operation is a success, Paragon ID will bid farewell to the stock market 9 years after taking its first steps on compartment C of Euronext Paris at 7.70 euros. The company was then called Ask before adopting the name Paragon ID in 2017, after its merger with the activities of the identification division of Paragon Group, itself a subsidiary of Grenadier Holdings.

Last April, Paragon ID indicated that it wanted to end the 2022-2023 financial year with an annual turnover of more than 185 million euros. This level of income would show a growth of 40% compared to the 130.8 million euros in annual turnover achieved last year. This management confidence in its annual activity followed the publication of a 48% growth (+45% at constant scope and exchange rates) of its invoicing to 51 million euros, for its third quarter of its fiscal year. staggered 2022-2023.

To find out more, the market will have to wait until July 26, the day of the publication of the turnover for the fourth quarter of 2022-2023, according to the financial calendar provided by the company. This will probably be Paragon ID’s last meeting with the Stock Exchange…