Interesting dealSo ECN is selling one of their 3 businesses, the Service Finance home improvement business, for $2 Million US, roughly $2.5 million Cdn, which is almost equal to the entire market cap of the whole company. Paying roughly $1.85 billion Cdn of the proceeds back to us shareholders in a $7.50 dividend. The 2 remaining businesses generate more than half of ECN's revenue, and the retained cash from the deal can be used to get rid of the senior term corporate debt if they choose.
In the quarterly financials just announced, if you look at the notes to the financials on Sedar, you will see that the Service Finance business accounted for 41.6% of ECN's total revenue. The remaining businesses, Triad and KG, accounted for 58.4%. Year over year revenue growth for Service Finance was 42.9%, for Triad was 72.5% and for KG was 30.6%.
Will be interesting to see how much of a move up the ECN stock price has tomorrow.