"A first offer is often negotiated and this might set the floor price."
After rereading the note, that is my (hopeful) assumption too, but the headline price IMO is an absolute steal if that is what they accept. Arguably the ANZ business is worth much more than the US business given most of this is recurring and >90% margin and with all of those relationships with the pharmacies, you could expand the offering into other services (and I really can't see anyone wanting to develop & maintain their own platform....although Chemist Warehouse is probably now big enough, the others could not justify the time/effort/cost). Speaking to a couple of pharmacists locally, they say Medadvisor app is clunky and could offer so much more (and they used StrongRoom AI for marketing because MDR did not have that offering).
Anyway, I know 1m shares is not the market, but clearly the initial reaction is that this is a poor offer.....the US business which is losing money is not worth $40m (irrespective of revenues), and I can't see how/why the board is entertaining this (I mean it represents ~5c of the share price and considering they launched this review when the price was 25c, it seems absolutely nuts to me)
Add to My Watchlist
What is My Watchlist?
