RE:RE:RE:RE:Virtual services IPOspeedy99 wrote:
Where's all this coming from? Did you have a bad dream?
Hamed talked about the potential for IPO'ing Virtual Services on the Q3 conference call, mostly because he said the market wasn't recognizing the value/growth of that business. WELL has something in their agreement with Circle about allowing an IPO as well (in addition to their call option to purchase the remainder of the biz).
yes this is speculation but it's a real concern about company valuation if they split off Virtual Services as this biz garners a much higher multiple (P/S, EV/EBITDA) than a medical diagnostic company and GI anesthesia company only, which has stable and steady operations but lower growth (although CRH has a long runway for growth by M&A).
I am aware nobody on this board wants to hear about the company being sold or broken up, but the fact of the matter is Li Ka Shing and the other investors who participated at $9.80 are down over
$150,000,000 on that trade. you can bet that they are pushing to rationalize shareholder value and a good way to do that is to i) sell the company, ii) break up the company and sell it, or do some M&A with each independent biz.
this is a great company with great management who are aligned with shareholder interests given their high ownership %. it's not a matter of desperation (WELL is capitalized with lots of cash and credit) but a matter of rationalizing shareholder value.