BP have put out a detailed update yesterday a few snips...

BP have put out a detailed update yesterday

a few snips

"Unsolicited bid for CLU business from major EU group ELX has received an unsolicited, non-binding offer from a major European group for the sale of its CLU business. ELX expects to resume trading on 12th Dec’19 on conclusion of negotiations. The iTrack business is not part of the sale, whether 2RT laser is part of the process is unclear. The CLU business is profitable and generated $65.5m in sales in FY19, with an EBITDA contribution of $9.5m. We currently assign an NPV of A$76m to the CLU business which translates to ~$0.53/sh and supports the company’s current stock price. The implied EBITDA multiple is ~8.0x. A bid for the CLU business alone (excluding 2RT) could be in the vicinity of ~A$70-A$75m and in our view will be a good result for ELX shareholders. The major EU group is undisclosed however we speculate that both Alcon and Carl Zeiss Meditek are strong contenders as potential bidders for Ellex’s CLU business."

"PT reduced to $0.98, Retain Buy Our EBITDA forecast for FY20 and FY22 reduced by 7% and 15% respectively and FY21 EBITDA increased by 7%, driven by reduced revenue forecasts for iTrack and 2RT, modestly lower gross margins, partially offset by lower opex forecasts. The earning adjustments and recent market movements affecting our relative valuations, have led to a material reduction in our price target for ELX to $0.98/sh (was $1.39/sh)."