(News Bulletin 247) – Trading in SES-imagotag shares was suspended on the Paris Stock Exchange on Thursday following the attacks launched by the activist fund Gotham City Research against the French specialist in electronic tags for commerce.

Gotham published a report this morning, already consulted more than 3000 times, which calls into question the economic model of the group, as well as the quality of its results.

The American fund says in particular that it wonders about the links between SES-imagotag and the Chinese group BOE, which is both its ‘largest shareholder, its main supplier, one of its most important customers, its co-operation partner. -company, and who also sits on the audit committee.

Under such conditions, ‘the risk of financial embezzlement is high’, believes Gotham.

The short-selling fund also says it questions the quality of the results, saying the company’s financial statements are “materially misleading, incorrect and deficient”.

In particular, he estimates that the EBITDA published for the 2022 financial year is overvalued by 106%.

As for the recent contract concluded with the American distribution giant Walmart, Gotham assures that the agreement is not profitable for SES, estimating that the company receives only 5.30 euros for each electronic tag supplied, while the unit cost of the product stands at 6.66 euros.

From Gotham’s point of view, the stock should simply trade in a range of 15 to 30 euros if it were to trade in line with the valuation levels of its peers.

No comment could be obtained from SES-imagotag on Thursday morning.

For the record, Gotham City published a similar report in 2014 concerning the Spanish Internet service provider Gowex, which had to file for bankruptcy in the process.

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