DAVY VIEW

dsm-firmenich has announced the sale of its stake in the Feed Enzymes Alliance to its partner Novonesis for a healthy gross consideration of €1.5bn (5x sales). The transaction equates to c.5% of the current EV – our model assumes a net debt position at year-end FY24 of €3.1bn and, as such, the transaction has a material impact on debt profile. The equity debate will now encompass capital returns. The bet from management is that it can still carry out a disposal of the Animal Nutrition & Health (ANH) business unit despite selling a high value revenue stream. On first look, we view today’s announcement as a good value unlock for the equity.