CNNE: Thoughts on recent, announced transactions

Research evidence excerpt

CNNE: Thoughts on recent, announced transactions

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Kenneth S. Lee (Analyst)

Adam Fallis (Associate)

July 1, 2026

Cannae Holdings Inc.

Thoughts on recent, announced transactions

NYSE: CNNE | USD 14.84 | Outperform | Price Target USD 16.00

Sentiment: Neutral

Net/net: In our view, recently announced transactions over the past few days, which include a small acquisition -- CNNE

acquiring a top division English rugby club -- and CNNE selling its Brasada Ranch asset to a company owned by Mr. Foley in

exchange for terminating Mr. Foley's put right, are consistent with CNNE senior management's strategy of monetizing non-core

portfolio investments; simplifying/streamlining the portfolio; freeing up capital for re-deployment, and, over time, shifting CNNE's

investment portfolio towards sports/entertainment assets. Thus, on balance, we have a favorable view on the recent transactions.

Further, in our view, it is incrementally positive that Mr. Foley would be more aligned with shareholders upon termination of the

put right with the Brasada transaction.

On July 1, CNNE announced it would be selling its 87% ownership interest in Brasada Ranch, a destination resort, to a company

owned by Mr. Bill Foley, CNNE's vice chairman; transaction expected to close on July 15, 2026. In exchange, CNNE will be

terminating Mr. Foley's "put right," which had been recorded as a liability on CNNE's balance sheet at $20.8mn, according to the

most recent 10-Q filing. The transaction frees up $47mn of capital for CNNE, which equates to the gross amount of settling the put

right. Release indicates CNNE's original cost of investment on Brasada to be roughly $13.5mn. The transaction values Brasada's

total enterprise value at $40mn.