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15 Dec 23. Airbus in talks to buy Atos cybersecurity business BDS -source.
- Summary
- Airbus-Atos talks have been going in background -source
- Renewed prospect of BDS sale after change of Atos chair
- Atos, Airbus decline to comment on ‘market rumours’
Airbus is in talks with Atos to buy its cybersecurity division BDS, a person familiar with the matter said, rekindling interest in one of France’s prized security assets after opposition from the aerospace group’s own investors earlier this year.
Atos (ATOS.PA) shares rose 21% after Le Figaro reported Airbus (AIR.PA) was in “advanced talks” with it over BDS, which secures communications for French military and spy agencies and builds servers for supercomputers.
The person familiar with the matter confirmed ongoing talks to buy BDS, which is part of an entity in which Airbus sought to buy a minority stake earlier this year, adding that contacts on the issue had never been entirely broken off.
Atos and Airbus declined to comment on “market rumours”.
Airbus said in March it had decided not to make an offer for a 29.9% stake in Atos’ division Evidian, later renamed Eviden, sending shares in Atos tumbling.
Airbus CEO Guillaume Faury said at the time it was still open to a strategic partnership, having previously noted that aerospace is increasingly driven by big data, connectivity and high-power computing.
Airbus dropped the idea after hedge fund manager Christopher Hohn and some other investors opposed it on the grounds that Evidian was a “highly levered company” that would dilute the quality of the Airbus business.
Le Figaro said Airbus was now in direct discussions with the Atos board on a narrower purchase of the BDS business.
For Atos, such a sale would mark yet another twist in a more-than-year-long saga marked by governance instability and a series of setbacks that pummelled its shares.
The renewed talks emerged two months after banker Jean-Pierre Mustier took the helm of Atos’ board of directors, following the tumultuous tenure of predecessor Bertrand Meunier.
SCRUTINY
Mustier, a former CEO of Italian bank UniCredit, was tasked with securing a contested deal with Daniel Kretinsky, under which the Czech billionaire would take over Atos’ loss-making legacy operations.
The plan includes a 900m-euro capital increase for Eviden, which includes BDS.
Jefferies analysts said a deal for BDS would be worth some 1.5-2.5bn euros, but could still face obstacles.
“We see the rationale of the deal as much sounder than acquiring a minority stake, given control of the assets of interest to Airbus,” Jefferies said in a note.
“However, we believe the group would still have to defend that this is not a politically driven deal, aimed at funding Atos’ transformation plan.”
The future of Atos has been under close French government scrutiny since its shares collapsed last year.
Airbus is itself in the midst of reorganising to give Faury more time to focus on problem-strewn defence and space activities, with the more vibrant commercial planemaking arm to be placed under its own dedicated CEO, Christian Scherer.
Until now, Faury has doubled up as leader of Europe’s largest aerospace company as well as its core civil activity.
The earlier stumble over Atos accelerated pressure on Faury from the Airbus board to sharpen the focus on its strategy outside the planemaking operation, and sped up the internal reorganisation, people familiar with the matter said.
Airbus is concerned that its position in an increasingly software-focused defence industry would be at risk if the Atos activities were absorbed by a rival such as French defence electronics maker Thales (TCFP.PA), one of the people said.
Thales has been busy acquiring assets this year but has denied being interested in buying a stake in Eviden. (Source: Reuters)
15 Dec 23. Czech CSG takes over Italian shotgun maker Armi Perazzi. Czech defence and industrial company Czechoslovak Group has agreed to acquire an 80% stake in Italian high-end sporting and hunting shotgun maker Armi Perazzi, CSG said on Friday.
CSG, owned by entrepreneur Michal Strnad, has seen rapid expansion thanks in part to sharp increase of supplies of equipment and ammunition to Ukraine as well as acquisitions.
Perazzi, which makes guns for top sport shooters and hunters, is based in Botticino in the northern region of Lombardy. The founding family retains the remaining 20% stake.
Last year, CSG acquired a majority stake in another Italian firm, Fiocchi Munizioni, the manufacturer of small-caliber ammunition.
In October, CSG agreed to take over U.S. firm Vista Outdoor’s (VSTO.N) sporting products unit, including its ammunitions business, in a $1.91bn deal expected to close next year. (Source: Reuters)
14 Dec 23. Serco has announced an acquisition and forecast higher than expected profits for next year. The company has bought German immigration services business European Homecare for €40mn (£34mn), and said it was expecting 6 per cent growth in underlying profits to £260mn in its 2024 financial year on the back of new contracts and improvements in efficiency. In a pre-close trading update the company said annual revenue for the current year was expected to be at least £4.8bn (up around 7 per cent) while underlying profits would be around £245mn. (Source: FT.com)
13 Dec 23. Rolls-Royce and Deutz AG are in positive discussions for the sale of the off-highway engines business in the lower power range up to 480 kW to Deutz AG for a price in the high double-digit m Euros. This relates to diesel engines and engine systems using Daimler technology which are developed and manufactured by Daimler Truck AG for Rolls-Royce Power Systems to its specifications and used mainly in agricultural vehicles and construction machinery, not in rolling stock or in military vehicles.
Rolls-Royce recently presented its strategy to become a high performing, competitive, resilient and growing business to investors. In the Power Systems division the focus will be on the strategic growth areas of power generation, governmental, marine, service and the future field of battery energy storage systems.
Tufan Erginbilgic, CEO, Rolls-Royce plc said: “This is a clear illustration of our strategy in action. Becoming more focused on the markets where we know Rolls-Royce can win. Power Systems is an integral part of our organisation with a strong brand and real advantage in power generation, governmental and marine end-markets, where we see the strongest demand and an opportunity for better returns from our power-dense and reliable solutions.”
Dr. Jörg Stratmann, CEO of Rolls-Royce’s Power Systems said,” As we evolve our strategy, we are also constantly analysing our product portfolio. As a result, we will be concentrating largely on higher-powered systems in the off-highway engine sector, primarily from our in-house production. We have therefore decided to transfer our successful lower-power-range engines business, which uses Daimler technology, to a partner.”
Until the transfer of the business is complete, Rolls-Royce’s Power Systems division will continue its activities in this business segment unchanged in such a way that customer relationships, delivery and service obligations remain unaffected. Following a final agreement, the closing – subject to regulatory approvals – is expected from mid-2024.
Rolls-Royce Power Systems currently has exclusive rights to the global distribution of off-highway engines using Daimler technology (MDEG, HDEP and Classic engine platforms), with the original contract term set to expire in April 2028.
The products under negotiation are the Series 1000, 1100, 1300 and 1500 engines and the Classic Series OM900 and OM460 in the 75 to 480 kW power range, albeit specifically not those used in rail or military vehicle applications. The total number of people employed in this part of the business is in double-digit figures. (Source: News Now/https://www.rolls-royce.com/)
13 Dec 23. L3Harris to suspend M&A program for ‘foreseeable future.’
U.S. defense contractor L3Harris (LHX.N) said on Tuesday it would suspend its merger and acquisition activity for the “foreseeable future” to strengthen balance sheet and forecast full-year revenue above analysts’ estimates.
The company said it expects revenue at around $21 bn for 2024. Analysts on average were expecting about $19 bn, according to LSEG data.
The company also outlined its capital deployment priorities for two years from 2024 which include investments in research and development and debt payment, and utilize excess cash for dividend increases and share buybacks. The company in its most recent quarter had total liabilities of $23.58bn, as per LSEG data.
Two weeks ago, L3Harris divested its commercial aviation solution business for $800m. The company said on Tuesday it will use the proceeds from the transaction to repay debt.
On Monday, L3Harris’ board appointed an ad-hoc committee to review the company’s operational performance, cost structure, and portfolio composition. It also named ex-Cooper Industries CEO Kirk Hachigian and former RTX Corp chief William Swanson to the board. Earlier this year, L3Harris in a highly contested deal acquired rocket engine maker Aerojet Rocketdyne for $4.7bn to tap into rising demand for missiles and defense systems. (Source: Reuters)
13 Dec 23. Cohort plc, the independent technology group, today announces its half year results for the six months ended 31 October 2023. The Group achieved a strong first half, with growth in revenue, profit, and order book compared with 2022. The increase in the interim dividend reflects the Board’s confidence in the Group’s growth prospects and continued commitment to a progressive dividend policy.
Highlights:
– Revenue up 22% to £94.3m (2022: £77.5m).
– Adjusted operating profit up 20% to £6.0m (2022: £5.0m).
– Adjusted earnings per share of 10.36 pence (2022: 10.12 pence) impacted by a higher tax rate and higher net interest charge.
– Order intake of £119.1m (2022: £88.6m), 1.3x the period’s revenue.
– Record closing order book of £353.9m (30 April 2023: £329.1m).
– Interim dividend increased by over 10% to 4.70 pence per share (2022: 4.25 pence per share) continuing the Group’s long standing track record of progressive dividend growth.
– Net funds of £13.3m at 31 October 2023 (31 October 2022: £0.6m net debt; 30 April 2023: £15.6m net funds).
Commenting on the results, Nick Prest CBE, Chairman of Cohort, said:
“Cohort delivered a stronger performance for the first half compared to the same period last year with growth in both revenue and adjusted operating profit. Strong order intake has driven a record closing order book which underpins most of the second half of this financial year. Consequently, in line with previous experience and given the 95% visibility the current order book gives us over current year forecast revenues, we anticipate a stronger performance in the second half and thus remain on track to achieve our expectations for the full year.
“The continued expansion of the order book is a strong indicator that we are offering competitive products in a growing market. On-order revenue is now deliverable out to 2033. The pipeline of order opportunities for the remainder of the year also looks strong. Demand for our solutions and services continues to be driven by international tensions in the Asia-Pacific region and Europe. This backdrop is driving increased spending on defence and security in Europe, including the UK, other NATO countries and the Asia-Pacific region. Overall, we continue to see a positive outlook for organic growth in the years ahead.”
13 Dec 23. Robust orders outpace Cohort’s strong revenue growth. Half-year order intake of £119m represents book-to-bill ratio of 1.3 times.
• Hiring spree increases overheads
• Full-year guidance unchanged
Cohort (CHRT) has been a beneficiary of the increased focus on defence following Russia’s invasion of Ukraine last year.
Not only has its top line risen by 22 per cent, but orders in the period ran ahead of this by around a third to £119m. Its order book closed up by around £25mn at £354m. Other wins in the six weeks since have pushed this up by a further £12m, to £365m. Not only does this mean that 95 per cent of this year’s consensus forecast revenue is already covered, but around £120m of next year’s is also in the bag.
Both of the company’s main operating divisions reported stronger sales, with the communications and intelligence arm growing its top line by a third thanks to an increase in orders from the Ministry of Defence. The larger sensors and effectors business also grew revenue by 15 per cent, but both arms reported a slight weakening of net margins.
Although there were specific reasons within each division, a big increase in headcount as the company staffs up to meet additional demand was a factor. Cohort has taken on around 170 staff over the past year – 100 in the past six months – and the associated costs of recruiting and getting people up to speed added to its costs.
As new staff bed in, and as supply chain pressures continue to mitigate, the company expects an improvement in performance during the second half and left full-year guidance unchanged.
Cash generation was also strong, helped by a series of advanced payments for work that will be delivered by the sensors and effectors arm in the second half. An increase in capex is also expected as a project to deliver sonar equipment to the Italian navy moves from development into production.
As a result, a slight unwind of its net cash position (excluding leases) is expected in the second half, from £13.3m at the half-year stage to between £8m and £10m by the year-end.
Higher spending also means analysts expect earnings per share to be marginally weaker (1 per cent) than last year, but an acceleration is forecast from 2025 onwards. Shore Capital analysts argue that “future growth appears assured”, given that the group is well managed, amply financed and has good visibility over its workload. We concur, and with the company’s shares trading at a reasonable multiple of 14.5-times earnings – in line with their five-year average – maintain our buy.
Last IC View: Buy, 489p, 19 Jul 2024. (Source: Investors Chronicle)
12 Dec 23. Demand blows up at Chemring’s energetics arm.
Order intake more than doubles to £358m.
• Roke software and technology arm also performing well
• Higher capex will weigh on short-term earnings growth
Although Chemring’s (CHG) full-year numbers came in slightly ahead of expectations, the muted reaction from investors is somewhat understandable.
Although the company reported an 18 per cent increase in revenue and a 17 per cent jump in underlying pre-tax profit, these were against a revised set of figures that don’t include its explosives hazard detection business, which has been discontinued following a review that concluded there weren’t enough decent opportunities for it to pursue.
Almost £50mn of impairments were recorded against its chemical and explosive hazards detection arms, which was the main factor behind an 89 per cent slump in net profit, to £5.4m.
Aside from this, though, Chemring’s prospects continue to look bright. “The geopolitical turbulence we are experiencing has resulted in many countries reassessing their defence and national security priorities and associated budgets,” chief executive Mick Ord said.
In Chemring’s case, this translates into higher demand for its energetics products, which are used in missiles and munitions – of which there is currently a major shortage.
Order intake for Chemring’s countermeasures and energetics arm increased by 52 per cent to £541m, pushing its order book up to £751m, which is well above the £400m or so it was averaging prior to last year. Countermeasures and energetics now has a book-to-bill ratio of 189 per cent, with most of its expected revenue for the next three years already in the bag.
Little wonder, then, that Chemring recently announced plans to spend £120m to increase capacity at its three energetics factories in Norway, Scotland and the US, which Ord said would bring in an extra £85m of revenue and £21m of operating profit a year from 2027 onwards. However, this will mean capex will remain elevated until then – at £70m for 2024, £60m for £2025 and £50m for 2026, which includes £20mn a year of maintenance capex.
Prospects also look decent for its sensors and information arm, whose 55 per cent revenue growth was driven largely by the Roke software and technology business.
Broker forecasts for this year are fairly are muted given the heightened capex spend – FactSet consensus estimates are for 3.5 per cent earnings per share growth. Yet increased orders should start to translate into meaningfully higher profits from 2025 onwards and with the shares currently priced in line with their five-year average in terms of both forward earnings and book value, we still think they look like decent value. Buy. Last IC View: Buy, 293p, 06 Jun 23. (Source: Investors Chronicle)
11 Dec 23. L3Harris Continues Board Refreshment and Provides Update on Shareholder Value Creation Activities. L3Harris Technologies (“L3Harris”) (NYSE: LHX) today announced that its Board of Directors has appointed Kirk S. Hachigian, former Chair and CEO of JELD-WEN Holding, Inc. and Cooper Industries plc., and William H. (“Bill”) Swanson, retired Chair and CEO of Raytheon Company, to its Board effective immediately. In addition, the Board intends to appoint an additional independent director in 2024.
Consistent with the company’s commitment to shareholder value creation and supporting the work already well underway, the Board will establish an ad hoc Business Review Committee, which will undertake a review of L3Harris’ operational performance, cost structure, portfolio composition and all available value creation levers. The committee’s review is expected to be completed in 2024. Current director Roger Fradin and Bill Swanson will Co-Chair the committee, and the additional members of the committee will include Kirk Hachigian and current director Rita Lane. L3Harris’ Former Executive Chair and CEO William M. (“Bill”) Brown will serve as a Special Advisor to the committee. The company will also adjust its long-term incentive compensation plan, which currently uses relative total shareholder return as a modifier, to incorporate relative total shareholder return as a core metric for performance share units.
In connection with these announcements, the company has entered into a cooperation agreement with funds affiliated with the D. E. Shaw group, which is currently one of the company’s largest investors. Pursuant to the agreement, the D. E. Shaw group and the L3Harris Board will agree on the additional independent director to be added to the Board in 2024. The D. E. Shaw group has also agreed to customary voting and standstill provisions.
“I welcome Kirk Hachigian and Bill Swanson to our Board as we advance our transformation into a stronger, more focused company poised to drive sustainable shareholder value,” said Christopher E. Kubasik, Chair and Chief Executive Officer of L3Harris. “The full Board appreciates the constructive engagement of the D. E. Shaw group and looks forward to benefitting from the perspectives of our newest independent directors at this time.”
Kubasik added, “We continue to take purposeful action as we implement our strategy to become a national security and technology-focused company. To that end, we recently appointed industry-veteran Ken Bedingfield as our CFO and announced the divestiture of our non-core Commercial Aviation Solutions business. Our team is excited to discuss the actions underway to further streamline and optimize our portfolio, deliver on our cost-savings goals, maintain disciplined capital allocation, accelerate operating income and grow free cash flow per share. We are confident these initiatives will put us on a path to create value for our shareholders, which we look forward to discussing in more detail tomorrow at Investor Day.”
“We appreciate the positive and constructive dialogue we have had with the L3Harris Board, and are supportive of the actions being taken by Chris, the Board and the management team to strengthen L3Harris,” said Michael O’Mary, Managing Director of D. E. Shaw & Co., L.P. “L3Harris is a leader in its core business, and we believe that today’s Board enhancements – along with the Board’s commitment to thoroughly review the Company’s business and optimize its portfolio, performance, and operations – positions L3Harris to deliver significant and sustainable value for its shareholders. We look forward to the company providing further information on its core initiatives, margin targets and capital allocation framework at its Investor Day tomorrow.”
With the addition of Kirk Hachigian and Bill Swanson to the Board, the L3Harris Board will comprise 14 directors, 13 of whom will be independent, and six of whom will have been appointed since 2021.
The company is hosting its Investor Day on Dec. 12, 2023. Investor Day details and registration information can be found on Investorday.L3Harris.com.
About Kirk S. Hachigian
Kirk S. Hachigian, 64, brings over 25 years of international leadership and operational experience from senior executive roles at leading manufacturing and industrial companies.
Mr. Hachigian previously served as Executive Chairman of JELD-WEN Holding, Inc., a global manufacturer of windows and doors, from 2016 to 2019; and as JELD-WEN’s Chairman and Chief Executive Officer from 2014 to 2016. His operational experience also includes his tenure at Cooper Industries plc, a global manufacturer of electrical products, where he served as Chairman and Chief Executive Officer from 2005 until the company’s $13 bn sale to Eaton Corporation in 2012.
Prior to joining Cooper, Mr. Hachigian was an executive with General Electric Company for eight years, where he served in key management positions in Singapore and Mexico.
Mr. Hachigian currently serves on the boards of Allegion plc, as Chairman, NextEra Energy, Inc. and PACCAR, Inc. and has previously served on the board of American Standard. He holds a bachelor’s degree in engineering from the University of California (Berkeley) and an MBA in finance from the Wharton School of Business.
About William H. (“Bill”) Swanson
William (Bill) H. Swanson, 74, brings over 40 years of leadership experience and a track record of successfully managing complex, global aerospace and defense operations.
Mr. Swanson was the Chief Executive Officer of Raytheon Company from 2003 to 2014 and served as Chairman from 2004 until his retirement in 2014. He joined Raytheon in 1972 and held a wide range of leadership positions with the company, including President of Raytheon from 2002 to 2004, Executive Vice President of Raytheon and President of its Electronic Systems division from 2000 to 2002, and Executive Vice President of Raytheon and Chairman and Chief Executive Officer of Raytheon Systems Company from 1998 to 2000. Bill Swanson was also awarded the Navy Distinguished Civilian Service Award, the highest award the Secretary of the Navy confers onto a civilian.
Mr. Swanson currently serves on the board of Hagerty Inc. and has previously served on the boards of NextEra Energy, Inc., TJX Companies and Sprint. He holds a bachelor’s degree in industrial engineering from California Polytechnic State University and was awarded an honorary Doctor of Laws degree from Pepperdine University and an honorary Doctor of Science degree from California Polytechnic State University.
(Source: BUSINESS WIRE)
11 Dec 23. SAIC to Realign Organization to Optimize Strategic Pivots and Increase Organic Growth.
HIGHLIGHTS
• Five new business groups to replace two current business sectors
• New business groups to include Army; Navy; Air Force and Combatant Commands; Space and Intelligence; and Civilian
• Realigned organization will seek to reduce hierarchy, increase innovation, expand business development and gain greater customer intimacy
Science Applications International Corporation (NYSE: SAIC), a premier Fortune 500® technology integrator driving our nation’s digital transformation across the defense, space, civilian and intelligence markets, today announced it will reorganize its business, effective February 3, 2024. The reorganization will seek to accelerate sustainable organic growth, better align with SAIC’s four strategic pivots – portfolio, go-to-market, culture and brand – and ensure the company is focused and agile in allocating investments to maximize innovation, differentiation and long-term value creation.
The current Defense and Civilian Sector and National Security and Space Sector will be replaced by five new business groups – Army; Navy; Air Force and Combatant Commands; Space and Intelligence; and Civilian. The new Civilian group will encompass the current Civilian, Health and State and Local businesses. This flatter organization is designed to enhance customer intimacy for the executive leadership team, who will work closely with the new business group leaders to advance SAIC’s innovation and go-to-market strategy and drive improved cross-collaboration, business development and organic growth.
“SAIC has an unmatched history of partnering with our nation’s most critical mission-driven government customers and offering a best-in-class portfolio of capabilities. As we look ahead, we are becoming a more focused and growth-oriented SAIC that realizes the full potential of our differentiators, fueled by our innovation factory. This builds upon our recent decision to centralize our business development function to prioritize the quality and pace at which we execute our market opportunities,” said SAIC Chief Executive Officer Toni Townes-Whitley. “We are confident the company will continue to bring innovative solutions to market, further prioritize growth and deliver significant long-term value for our shareholders, customers and employees.”
Four of the five new business groups will be led by current SAIC senior vice presidents who will be promoted to executive vice president and report directly to Townes-Whitley beginning on February 3, 2024. Josh Jackson, Barbara Supplee, Vinnie DiFronzo and David Ray, will lead the Army, Navy, Air Force and Combatant Commands and Space and Intelligence business groups, respectively. An external search for the Civilian business group is being conducted to identify a strong best-of-market leader who will drive significant organic growth in this market. Bob Genter, President, Defense and Civilian Sector and Michael LaRouche, President, National Security and Space Sector will depart the company, effective as of February 2, 2024, to pursue opportunities outside of SAIC.
Townes-Whitley added, “On behalf of all of SAIC, I would like to thank Bob and Michael for their leadership and meaningful contributions to SAIC. I would also like to congratulate Josh, Barbara, Vinnie and David on their promotions. Each brings unique expertise and experience that I am confident will best position us to execute our strategic vision and support our customers as they navigate complex national security challenges.” (Source: BUSINESS WIRE)
11 Dec 23. ProvenRun secures €15m funding to accelerate IoT-related expansion. However, the global defence sector experienced a 50% decline in the number of IoT-related patent applications in Q3 2023 compared with the previous quarter.
software company ProvenRun has announced a €15m ($16.1m) fundraising round, with investment led by Tikehau Capital through its private equity cybersecurity strategy with the French Ministry of Defence’s Definvest fund.
ProvenRun has developed its ProvenCore secure operating system (OS) and apps for connected vehicles and smart devices, certified to EAL7 Common Criteria standard. According to the company, its ProvenCore system is a secure-by-design software solution intended to tackle challenges arising from the rapid growth of the Internet of Things (IoT).
The Series A funding will help accelerate ProvenRun’s product roadmap (automotive security applications, Risc-V architectures) and geographic expansion into North America.
Tikehau Capital’s investment is made through its private equity cybersecurity strategy, which currently stands as one of the largest private equity vehicles dedicated to digital security in Europe, stated the company.
Speaking of the investment, Alexandre Lahousse, head of the Industrial Affairs and IE Department at France’s Direction Générale de l’armement (DGA), said that securing embedded digital systems was “at the very core” of the Ministry of Defnce’s digitisation strategy.
IoT key trend in industry
The global aerospace, defence, and security industry experienced a 50% decline in the number of IoT-related patent applications in Q3 2023 compared with the previous quarter. The total number of internet of things-related grants dropped by 38% in Q3 2023, according to GlobalData’s Patent Analytics.
The largest share of IoT-related patent filings in the aerospace, defence, and security industry in Q3 2023 was in the US with 59%, followed by South Korea (18%) and China (6%). The share represented by the US was 15% higher than the 44% share it accounted for in Q2 2023.
(Source: naval-technology.com)
11 Dec 23. Robbins LLP Reminds Shareholders of Class Action Filed Against EHang Holdings Limited. Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired EHang Holdings Limited (NASDAQ: EH) securities between January 20, 2022 and November 6, 2023.
EHang describes itself as an “autonomous aerial vehicle technology company.”
For more information, submit a form, email Aaron Dumas, Jr., or give us a call at (800) 350-6003.
What is this Case About: EHang Holdings Limited (EH) Misled Investors Regarding its Business Prospects
According to the complaint, during the class period, defendants failed to disclose that (1) EHang has continued to state that it was partnering with United Therapeutics, DHL, and Vodafone, among others, even though a former EHang employee has noted that United Therapeutics, DHL, and Vodafone have abandoned their respective deals with EHang and (2) EHang omitted that other entities that had placed pre-orders for its aircraft, such as Prestige Aviation and Shenzhen Boling Holding Group, did not engage in regular business in the aviation sector and are otherwise almost certainly not in a financial position to be able to afford their orders.
Plaintiff alleges that on November 7, 2023, Hindenburg Research released a report entitled “Ehang: Hollow Order Book And Fake Sales Make This China-Based eVTOL Company Last in Line For Takeoff” (the “Hindenburg Report”). The Hindenburg Report made a number of allegations regarding the Company’s business, operations, and prospects, and raised issues with EHang’s purported deals with entities called United Therapeutics, Prestige Aviation, AirX, Shenzhen Boling Holdings Group, and DHL Sinotrans, among other things. On this news, the price of EHang ADSs declined by $1.90 per ADS, or 12.70%, to close at $13.06 on November 7, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against EHang Holdings Limited. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by February 2, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 bn for shareholders.
To be notified if a class action against EHang Holdings Limited settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today. Attorney Advertising. Past results do not guarantee a similar outcome. (Source: UAS VISION)
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