Of course if you have to tell the market you didn't need to sell, and you could have paid your debt from cashflow, it raises doubts that is actually the case...
But it does kind of make sense, EM solutions seems a good business and I would happily own it as a demerged business, but I didn't see any synergies with EOS - other than the defence contracting cross over. Further, I think the cash release and balance sheet improvements de-risks EOS, and without spacelink, those funds will hopefully be better utilised.
That said, per usual, the leaky ship has been at full sail prior to this announcement and I expect the market will react poorly tomorrow. A lot of analysts have pointed to EM Solutions as the best part of EOS. I think the future is far more binary now.
All IMO, please DYOR and GLTAH
EOS Price at posting:
$1.06 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)