EYE (previously Ellex ELX) has now completed the sale of part of its business for $97.4m. Their market cap is now $92m with $97.4m in cash and the rest of the business. They have a plan to return capital plus pay a fully franked dividend next week.
Essentially they sold their low growth part of the business and have retained their innovative eye treatment solutions 2RT and iTrackTM that they believe will be fast growth. Very experienced company and team who know their industry well.
By buying shares at 63.5c you're essentially paying 20.5c per share for the remaining business (with the 14c dividend and the 29c return of capital paid next week).
- Equivalent Share Price after dividend/reduction: 20.5c
- Shares On Issue: 143.6 million - Market Cap: $29.43m
- Debt: $0 - Cash: $15m - Enterprise Value: $14.4m
To buy the remaining parts of EYE for an enterprise value of $14.4m with no risk of capital raisings in the near term seems cheap to me.
