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Photon Group shares soar 26% on debt free announcement after asset sale

Last updated: 17:10 03 Nov 2011 AEDT, First published: 16:10 03 Nov 2011 AEDT

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Photon Group (ASX: PGA) was well received by the market today after the company announced the sale of its Field Marketing & Retail Agencies division to Navis Capital Partners for $146.5 million in cash.

The positive outcome from the asset sale is that the deal will leave Photon debt free.

Photon's shares closed at $0.065 on big volume of 21 million shares, providing the stock with a 26% gain on the day.

Under the agreement, Photon will sell its five Field Marketing & Retail agencies - Demonstration Plus, Club Sales & Marketing, Powerforce, Ausrep, and REL– as well as two closely-related businesses - Artel and Retail Insight.

This price of $146.5 million represents a multiple of 7 times the last 12 months EBITDA.

Including this transaction, over the past year, Photon has sold 13 businesses for a total of $233 million consideration at an average of 7.5 times trailing 12 months EBITDA.

 

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