Very subdued market reaction IMO. This leaves HLO with great optionality, and eminently secure to get through to post covid.
Underlying EBITDA was 73.5m in FY19, based on the FY 20 report.
So that is a divestment of about 30% of earnings at that time for half of the current market cap. It should be the most desirable part in the current circumstances.
The interesting thing is: The market cap of the whole business was about 605m roughly in 2019, so HLO are getting about 29% of that market cap. SH are getting roughly the same price as they would have in the great times. (I acknowledge I am not looking at any EBITDA multiple difference between the two segments.)
HLO Price at posting:
$2.52 Sentiment: Hold Disclosure: Held
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