Full ASX Announcement
This morning AVA announced it has entered an agreement with TTG Bidco Limited to divest its non-core Services Division, Ava Global.
The sale will allow AVA to fully focus on the Technology Division, growing recurring revenue and expanding into new markets and applications.
ASX 'pre-open' bids indicate a higher opening to the share price today.
- Sale price of US$46.4 million (A$63.1 million) with anticipated net cash proceeds of US$31.1 million (A$42.4 million) after closing adjustments, and payment of management incentives and FY2021 accrued bonuses
- Net cash investment return to Ava Risk Group of circa 587%
- Expected completion by the end of October 2021
- Post divestment of Ava Global, Ava Risk Group comprises of leading security technology and sensing solution providers Future Fibre Technologies and BQT Solutions
Ava Risk Group CEO Rob Broomfield said: “We are pleased to crystallise our return on investment from Ava Global by implementing this Transaction. From a peak funding investment of US$5.3 million, Ava Risk Group will have received more than US$36.4 million (A$49.6 million) in cash from our Services Division, a net cash return of some 587% over approximately five years."
AVA will provide an update on their growth strategy and policies around surplus cash when they report FY2021 results on 30th August.
Disc: Held SM & IRL
