Jun. 18 at 4:56 AM
$BGSF So,
$99M sale -
$38M debt +
$2M cash =
$63M / 11.1M shares =
$5.67/share cash
Company says they will use proceeds to pay down most of their debt, and invest in the remaining property mgmt business, but expect to have excess cash. They will explore the best use of remaining proceeds. They could issue a special dividend of excess cash is one possibility if they don't have any other uses.
At the current price
$5.37, the property mgmt business is basically valued at
$0. The professional services they sold was the higher profit margin business and represented approximately 75% of their revenues. If the company is debt free going forward, that may improve profitability for the remaining property mgmt business. If you think it has some value, then the current price may be a good deal. It was a good deal for the company, but not sure how much upside there is for remaining business.
