The statement states that "Morgan Stanley will buy 60% interest in ABC's U.S Business reflecting a value for 100% of the US Business of $775 million US dollars. The transaction will result in cash proceeds on completion of approximately 750 million Australian dollars. ABC retains a material ongoing presence in the U.S."
Although poorly written, it does say that ABC values its total US interest at $775 million US dollars. However, Morgan Stanley is willing to pay 775 million dollars for 60% interest of the US interest. It is a good deal for ABC which will enable it to get rid of approximately 750 million in debt. That's why ABC stated that it still retains a material ongoing presence in the US because it still has 40%. It has not sold 100% of the US business for 750 million which has been the misinterpretation of some.
Bad news for the shorters who didn't cover their position before the trading halt.
ABS
a.b.c. learning centres limited
