The data sharing is covered in the update and referred to as a license agreement. Effectively setting up two entities positions one as a new customer for the other I guess.
I suspect that if a straight trade sale was done for a cashflow negative business the the sale might be done cheaply or even seen as a fire sale. Probably not great for OTH shareholders in the short term. Selling part of the business now potentially gets a better price with upside potential for the remaining equity stake in this business in the future.
OTH valuations should be easier as the main operations can be priced on a straight p/e or cashflow multiple with an equity valuation on top. There will be some short term uncertainty on the new business valuation until an announcement on what the 51% equity terms agreed are.
Guessing this is a factor in the SP jump since over last couple of days.
All IMO.
OTH Price at posting:
65.0¢ Sentiment: Hold Disclosure: Held
