The costs to separate the spinco itself might be more that the value of shares they are getting, in terms of all systems that need to be extricated out of common CS processes and plugged into vantiva.
Vantiva total mcap is 56mil Euro , so 25% of Vantiva at current price is less than 15million Euros
https://www.telecomtv.com/content/access-evolution/commscope-finally-offloads-its-problem-child-48618/
@ @vel+1oXIMxxw : Yes they do bring in 1.4B/year, however the profits are , well, non-existent.
Doesn't matter how much the top line is, if the bottom line ain't there then its a resource hog.
Vantiva aren't doing great, out of the frying pan...
If only HN can get out before someone comes and changes the locks.
It's down to less than 11m now. Slightly more than a years comp. for our CEO
Who cares how much top line you bring in if the business is losing money? All that means is other groups need to fund operations with their earnings rather than pay down debt. Smh indeed.
Where does it say there is a transfer of debt?
It appears that they are not merely selling HOME to generate income; instead, they are selling HOME burdened with Debt in order to alleviate their own Debt. Consequently, the responsibility of repaying the new creditors now falls on Vantiva. Smart move if true.
Wow, considering the fact that Home brings in about $1.4B a year in revenue, this just seems like an odd sale and CS basically getting pennies in return. I'm sure the Director and above salaries are more than than the 15m Euro in return. Why not just hold onto the division and look for a better buy or better yet, spin it off and transfer some of the debt to the spinco? Smh.