SES-Imagotag tracks worst day ever after Gotham City Research's report

Vusion SA

23/06/2023 09:35

** Shares in SES-Imagotag  SESL.PA  tumble 52% as it resumes
trading after Thursday's temporary halt, on track for worst day
ever in the wake of a shortselling report by Gotham City
Research
    ** Gotham says SES Imagotag's financial statements are
"materially misleading, incorrect, and deficient" and cites
accounting discrepancies regarding business relationship with
BOE Technology Group  000725.SZ 
    ** The French company rejected the allegations, saying the
report includes "several gross inaccuracies and/or
misunderstandings" to which it will respond in more details in
the coming days
    ** "Dubitious on reading this first report, we came away
from our discussions with management reassured," broker
Portzamparc says
    ** "On the basis of the information available to us at this
stage, we feel that SESL is an easy target for an activist
short-seller, given its exceptional stock market record and its
links with a Chinese group, even if it means using clumsy or
dishonest arguments," Portzamparc adds
    ** BOE Technology Group is SES-Imagotag's largest
shareholder
    ** The broker says the shares "will obviously suffer" but
sees no reason to reevaluate its investment thesis at the moment
    ** Friday's losses wipe off 1.4 billion euros ($1.5 billion)
from the company's market cap

($1 = 0.9200 euros)

 (Reporting by Olivier Cherfan and Lina Golovnya)
 ((olivier.cherfan@thomsonreuters.com ;
lina.golovnya@thomsonreuters.com))