The company will divest GraysOnline and AreYouSelling for $60m to Quadrant Private Equity. The transaction includes a distribution agreement, allowing EclipX to continue benefiting from utilisation of Grays automotive segment as a disposal channel.
The timing of the divestments and value are ahead of UBS estimates and the sale will result in a non-cash loss of -$100m, recognised in the second half.
Further catalysts, the broker concludes, include the refinance of corporate debt, sale of commercial equipment finance and the sale of Right2Drive. UBS puts its Buy rating and $1.50 target under review.
Sector: Diversified Financials.
Target price is $1.50.Current Price is $1.55. Difference: ($0.05) – (brackets indicate current price is over target). If ECX meets the UBS target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).