Argan Merger: Potentially Accretive, Manageable Risks

Research evidence excerpt

Argan Merger: Potentially Accretive, Manageable Risks

Idea

August 3, 2026 04:00 AM GMT

Morgan Stanley & Co. International plc+MWarehouses de Pauw | Europe Ana Escalante

Equity Analyst

Argan Merger: Potentially Ana.Escalante@morganstanley.comBart Gysens, CFA +44 20 7425-3271

Bart.Gysens@morganstanley.com +44 20 7425-5862

Accretive, Manageable Risks Paula Bayer

Research Associate

Paula.Bayer@morganstanley.com +44 20 7425-3053

We update numbers for 1H26 results and run pro-forma

financials for the proposed merger with Argan. Warehouses de Pauw (WDPP.BR, WDP BB)

Property | Belgium

Updating estimates post 1H26 results. We leave our EPS forecasts unchanged, but Stock Rating Equal-weight

we trim our NAV estimates following broadly flat valuations over the first half, as Industry View Attractive

Price target €27.0

market rental values remained stable. We do not incorporate any potential impact Shr price, close (Jul 30, 2026) €22.4

52-Week Range €26.2-20.3

from the proposed merger with Argan, as the transaction is still subject to

Mkt cap, curr (mn) €5,258

shareholder, tax and regulatory approvals. However, we take a detailed look at the Net debt (12/26e) (mn)* €3,670

EV, curr (mn)* €8,748

proposed acquisition and include illustrative pro-forma financials.

* = GAAP or approximated based on GAAP

Good strategic rationale, financially accretive, and cultural fit. The proposed Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

merger should provide WDP with greater scale and likely better share liquidity, NAV per shr (€) 21.9 22.7 24.3 26.4

while growing in an NAV-enhancing way and with medium-term EPS accretion: we EPS (€)** 1.53 1.60 1.70 1.80

Prior EPS (€)** - 1.60 1.70 1.80

estimate 6% NAV accretion if the deal were to complete in 1Q 2027, and 1%/3% EPS DPS (€) 1.23 1.29 1.36 1.44