Free Issue No. 17 of 20.08.2020
The takeover of the telecoms company SUNRISE does not really come as a surprise. In our March 12 issue, we already pointed out that UPC owner Liberty Global could turn the tables and incorporate SUNRISE in the form of a takeover! Over the last few weeks, various securities houses have expressed their positive views on SUNRISE. Most of the price targets actually fluctuated around the current takeover price of CHF 110. It can be assumed that the transaction will be successful. The management recommends accepting the takeover bid and, more importantly, the major shareholder Freenet, which holds 24% of the votes, also agrees. Freenet apparently prefers to get (needed) money for SUNRISE rather than stay invested there. Only recently, when the share price had almost reached our price target of CHF 90, we also considered an increase into the "triple-digit" range. However, we are particularly bothered by the fact that SUNRISE is working intensively with Huawei, the Chinese company that has fallen out of favour with the US, which means that there is a degree of dependency. Since the takeover is expected to last until the end of the year and a failure (against all expectations) can never be completely ruled out, we prefer to realize the profit now and sell the share, ideally at around CHF 109!
SUNRISE N is listed on the SIX Swiss Exchange under the symbol SRCG, the security number is 26'729'122, last price approx. CHF 109.20.
