EML has announced this morning that it has sold its Sentenial business for EUR 32.75mm, of which EUR 7.5mm is contingent upon performance of a key contract up to completion of sale. You would like to think that they are sufficiently comfortable with whatever guarantees have been given, but who knows. On balance, this is disappointing because it works out to AUD 54m (of which 4.5mm is contingent) and EML paid $172mm for the business. However, the market seems to have liked it this morning presumably because it simplifies the business and returns focus to the cash-printing operations.

Disc: held here and IRL.

Further to reddogaustin’s post, Jeremy Raper’s (now unlocked) write-up for March sets the scene pretty well. His subsequent Twitter threads are also worth a read.

https://rapercapital.com/2023/03/30/new-idea-fundamental-value-w-event-kicker/