@jayjayjayjay made the observation yesterday that it was D-Day for the first tranche of completion payments for the Morrisons business. They also made the prescient observation that there had been some chatter about the ability of New Quantum to fund the deal. Today Sequoia went into a trading halt having not received the $15m instalment.

The question now will be whether the deal can be revived. Arguably it's a win-win for Sequoia. If the deal cannot be salvaged Sequoia will be entitled to keep a $3.35m deposit already paid as a break fee, and be free to hawk the business to other interested parties. For New Quantum it could prove an expensive mistake to have put in a bid before getting a pre-approval from their bank!

[Previously but not currently held]

seems like a free-kick in terms of getting something out of it but I would much prefer to see that deal go through. It almost seemed too good to be true. Hopefully someone else comes up with something with similar terms. Unsure what New Quantum were thinking if this deal does not go through. They have just left $3.35mil on the table for nothing.

I still hold SEQ because of that Morrisons business it seems like a little gold nugget within that business. I also do believe management are aligned with the shareholders but having said that i have been disappointed with some decisions recently made. I was not a fan of the last bunch of acquisitions (eg Share Care) which seem like they have not benefited the company at all right now. So I question Gary's ability to make good M&A decisions moving forward. If/when they sell Morrisons and they have significant money available to them I worry that the decisions made with this money could be questionable. Remains cheap on a valuation standpoint.