That (under certain assumptions) enterprise value is independent of capital structure cuts both ways. What follows is that (under certain other assumptions) EV alone won’t suffice to price your capital structure. A case in point is now Branicks. Whereas the 2025 bet was all about asset value (read EV), the 26/27/28 bet will be very different. We have entirely renewed our analysis of Branicks, its cash flows above VIB, its portfolio, VIBs portfolios and more. But even though the fundamentals stack up as expected, we now find our decision swayed entirely by another factor.

After the 24H1 results, we have altered our positioning in Branicks to reflect the new risk-return profile of the bonds. Our changed investment view also reflects the relationship with VIB and the potential impact on future intra-company transactions, particularly given the VIB AGM outcome. Finally, we outline what we want to see in terms of asset disposals both in amount and in sector.