Rekeep - comment
Rekeep is set to report its Q3 results later today. Still, investor focus is instead on reports that the Palermo Prosecutor’s Office has requested house arrest for former governor Totò Cuffaro and former minister Saverio Romano, as part of an investigation into an alleged bribery system involving public contracts. There is no concrete evidence that the case involves Rekeep, but investors have faced similar situations before.
The investigation is said to concern laundry and sterilisation contracts, which represent 12% of Rekeep’s revenue and 24% of EBITDA. Again, there is no indication that Rekeep is implicated, but unless management can address investor concerns convincingly, this issue is likely to weigh on the bonds for months to come.