- Swvl ( NASDAQ: SWVL ) said Friday it formed a special committee comprised of independent directors to explore potential strategic alternatives amid macroeconomic headwinds and volatility in capital markets.
- The committee will evaluate alternatives including a sale, merger or other business combination, sale of all or a portion of assets, strategic investment, or new debt or equity financing.
- Macro uncertainty is expected to potentially impact Swvl's ( SWVL ) ability to generate sufficient cash from operating activities and external financing to fund working capital.
- If Swvl ( SWVL ) is unable to execute on any potential strategic deal or generate enough cash flow, it may need to scale back or discontinue parts of or all operations to further cut costs or seek bankruptcy protection.
- The company will continue ongoing cost-cutting measures including discontinuation of certain operations, which can take the form of liquidation or insolvency of local entities.
- Swvl ( SWVL ) has not set a timetable for completing the strategic review.
- There can be no assurance that the review will result in any deal.
- SA Quant is bearish on Swvl ( SWVL ) as the stock is at high risk of performing badly .
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Swvl to begin strategic review amid macro headwinds, volatility in capital markets