RE:RE:Newd out- Nectar soldcambridge99 wrote: This is great news. There wasa significant risk given the profit pressure at Sainsbury's that they would be like Air Canada and withdraw out of the partnership. Getting $100M net out of this transaction is just under 20% of the current market cap.
They continue to sell assets and generate cash that is being used to pay down debt and de-lever the balance sheet. Yes FCF will go down but the International Coalition is generating about $25-$30M in adjusted EBITDA and has been decreasing. A low valuation at 4x EBITDA but reasonable given the circumstances.
Congrats to AIMIA management on this sale. Real question is now that debt is being paid down what will they do with the FCF that is still being generated?
I don't read it as $100M net. They are reporting a net cash reduction of $175M. Not totally sure why that is, but it's a big chunk of that $600M they had. What am I not understanding here?