Strange announcement.
$40m asset sale in the context of a $9bn asset base... not even a rounding error.
That said, there are a few takeaways that one could make:
1. Selling an asset at 57% of its carrying value is somewhat of a comment about the shareholder value-diluting empire building that a succession of FBU executives have undertaken over the past 15 years, spurred on by dirt cheap cost of capital.
2. Why invest in, let alone operate and retain, a business that represents a mere 0.045% of your asset base?
3. I suspect FBU's portfolio contains many of these sorts of illogical, sub-scale business units which contribute negligible earnings and therefor are probably just a drain on management time and focus.
4. In the light of the above comments, if this portends something of a root-and-branch, strategic review of the company's asset base, it could be the start of a much-needed asset rationalisation phase which has the potential to restore part of the shareholder value that has been destroyed. But it is tantamount to unscrambling the egg, so I don't think one should hold one's breath.
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Strange announcement. $40m asset sale in the context of a $9bn...
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Last
$2.68 |
Change
-0.030(1.11%) |
Mkt cap ! $2.098B |
Open | High | Low | Value | Volume |
$2.71 | $2.72 | $2.65 | $1.559M | 580.5K |
Buyers (Bids)
No. | Vol. | Price($) |
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5 | 8771 | $2.67 |
Sellers (Offers)
Price($) | Vol. | No. |
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$2.70 | 29238 | 9 |
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4 | 7219 | 2.670 |
3 | 12928 | 2.660 |
10 | 61101 | 2.650 |
3 | 9805 | 2.640 |
8 | 32711 | 2.630 |
Price($) | Vol. | No. |
---|---|---|
2.700 | 27678 | 8 |
2.710 | 14869 | 3 |
2.720 | 21407 | 5 |
2.730 | 7151 | 3 |
2.740 | 2011 | 1 |
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INFINITY LITHIUM CORPORATION LIMITED
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