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
$2.50 |
Change
-0.140(5.30%) |
Mkt cap ! $1.957B |
Open | High | Low | Value | Volume |
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2 | 3864 | 2.460 |
Price($) | Vol. | No. |
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2.520 | 1984 | 1 |
2.530 | 8983 | 3 |
2.540 | 11822 | 2 |
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