CORRESP 1 filename1.htm CORRESP

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LOGO

July 31, 2020

 

  Re:

Global Blue Group Holding AG (the “Company”)

      

Registration Statement on Form F-4, as amended

      

Filed February 24, 2020, June 19, 2020, July 8, 2020, July 17, 2020 and July 23, 2020

      

File No. 333-236581 (the “Registration Statement”)

 

Ms. Christine Dietz

United States Securities and Exchange Commission

Division of Corporation Finance

Office of Technology

100 F Street, N.E.

Washington, DC 20549-3628

 

cc: Mr. Jeff Kauten

Dear Chris:

This letter is in response to your request from our call on July 30, 2020, for some further information regarding the recoverable amount/goodwill figures for the Staff’s Comment 3 from the Staff’s letter of July 27, 2020. The Company’s response is below.

 

   

As noted in the response letter dated July 30, 2020, the Company had within the July 20, 2020 letter provided the headroom by which the recoverable amount of the CGU less net debt exceeded the carrying value of the goodwill (“Method 1”). Upon clarification of the Staff’s question in the letter dated July 23, 2020, the Company provided the recoverable amount for each of the CGUs relative to the carrying value (including goodwill) of the CGU (“Method 2”)

 

   

To assist with the Staff’s review, please see attached a summary table summarizing the headroom (€K and %), per method, for both the central case and the negative growth sensitivity

 

BEIJING    HONG KONG    HOUSTON    LONDON    LOS ANGELES    PALO ALTO    SÃO PAULO    TOKYO    WASHINGTON, D.C.


 

     Simpson Thacher & Bartlett LLP

Christine Dietz

  -2-    July 31, 2020

 

 

   

While the conclusion remains unchanged, the numbers are not entirely comparable, as clarified below:

 

  o

In Method 1, the FV of the CGU is after the deduction of the net debt; whereas, in Method 2, the FV of the CGU was not accordingly reduced for net debt

 

  o

When comparing the negative growth sensitivity to the central case, while the FV of the CGU reduction is the same in both methodologies, due to the net debt being constant (i.e. not impacted by the sensitivity), the magnitude of the decline in the FV of the CGU (less net debt) in Method 1 is larger

With regard to Staff comment 4, we propose to cover the additional footnote disclosure you requested in Note 17 (Goodwill), instead of subsequent events, because it is not a subsequent event, but rather is due to using available information through when the financial statements are issued.

Please let us know if a further discussion would be helpful.

Thanks again for your consideration,

/s/ Michael Wolfson

Michael Wolfson

 

cc:

Far Point Acquisition Corporation

Global Blue Group Holding AG

Morgan, Lewis & Bockius LLP


(€K)   

Central Case

   

Negative 2.5% Sensitivity

 
JULY 20TH ANALYSIS (“Method 1”)          
     FV of
CGU
     Net
Debt
    FV of
CGU
(less net
debt)
     Goodwill
of CGU
     Headroom      %
Goodwill
    FV of
CGU
     Net
Debt
    FV of
CGU
(less
net
debt)
     Goodwill
of CGU
     Headroom      %
Goodwill
 

TFS

     1,446,475        (442,318     1,004,157        358,760        645,397        180     833,299        (468,141     365,158        358,760        6,398        2

AVPS

     327,731        (100,217     227,514        49,200        178,314        362     132,422        (74,394     58,028        49,200        8,828        18
  

 

 

   

 

 

 

Total

     1,774,206        (542,535     1,231,671        407,960        823,711        202     965,721        (542,535     423,186        407,960        15,226        4

Memo: Net debt allocated based on the proportional split of the FV of CGU per case

 

        
                  
JULY 24TH ANALYSIS (“Method 2”)  
     FV of
CGU
                  Carrying
Value of
CGU
(incl.
Goodwill)
     Headroom      %
Carrying
Value
(incl.
Goodwill)
    FV of
CGU
                  Carrying
Value of
CGU
(incl.
Goodwill)
     Headroom      %
Carrying
Value
(incl.
Goodwill)
 

TFS

     1,446,475             671,351        775,124        115     833,299             671,351        161,948        24

AVPS

     327,731             104,086        223,645        215     132,422             104,086        28,336        27
  

 

 

         

 

 

   

 

 

         

 

 

 

Total

     1,774,206             775,437        998,769        129     965,721             775,437        190,284        25