EML shares jump on Sentenial business sale
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The news: Shares in EML have climbed after the payment services group agreed to sell its unprofitable Sentenial payment business in Europe to rival fintech GoCardless.
The numbers: EML will sell the business for 32.8 million Euros ($54.1 million). It had received expressions of interest in November for the Sentenial business, which is projected to book a $2 million earnings loss in FY24.
Shares in EML were up 6.2% to $1.20 after the news during early trading on the ASX.
The context: EML called the Sentenial business “non-core” and said the sale would allow the group to simplify its organisational structure as well as strengthen the balance sheet. It also does not have any material overlap with any of the other group business lines.
The deal includes a potential downward price adjustment linked to ongoing key contract performance and will be subject to approvals from the French and UK financial regulators.
The source: ASX announcement
