Flora - comment

As we have repeatedly highlighted, KKR needs to engineer an exit from Flora as it approaches its 10-year ownership mark. The Sky News report should temper any short positioning in the subordinated debt and provide some positive momentum to the bonds.

That said, this remains very early stage. While the reference to multiple financial sponsors is encouraging, we are not getting over-excited at this point. Given the size of the business, our base case remains a geographical split of the group. The reported €7bn valuation also looks more realistic than the $10bn valuation referenced earlier this year.

https://news.sky.com/story/flora-food-group-owner-kkr-to-kick-off-7bn-auction-13588524