We know that NeraTel main two businesses are
telecommunications and
info-communications. Under info-communications, it is further defined into network infrastructure and payment solutions.
On 20th May 2016,
NeraTel announced that it has came into an agreement to sell its payment solution business to Igenico Group for S$88 million. The net proceed from the disposal of NeraTel payment solutions will be paid to shareholders.
My stock portfolio consist of 6% of NeraTel and I am pretty much concern about how the sale of its payment solution business will impact my holdings.
According to the announcement,
- NeraTel’s earning per share will fall from 3.7 cents to 2.9 cents after disposal of its payment solution business.
- Payment solutions business accounted for approximately 26% NeraTel’s total revenue of S$181.5 million and approximately 21% of its total earnings of S$13.4 million.
My personal analysis
- After disposal, NeraTel will be a pure Telecommunications play...
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