Xerox Strategic Review

STARTEEPO Urges Xerox Board to Unlock Value Through Financial Services Review

StartEEPO SICAV as. (STARTEEPO) has issued a letter and investor presentation to the Board of Directors of Xerox Holdings Corporation (Xerox Holdings Corp. (XXRX), urging action to unlock significant shareholder value by increasing transparency about Xerox Financial Services (XFS), exploring the potential sale of all or part of the business unit, deleveraging the Company, and maintaining capital discipline. STARTEEPO has increased its investment in Xerox to a beneficial ownership of 7.34%, including stocks and options. The letter urges a formal strategic review of the XFS business, which could be worth $7.69 per share, more than double Xerox’s current share price. The investor presentation also suggests that XFS, which finances customer equipment purchases, could have an enterprise value of between $1.3 billion and $1-5 billion before a dollar of the core business is counted. The firm argues that the right strategy in place and proper execution, based on precedent transactions, the X FS business could be valued at roughly $7.,69 per shares.