Interesting to see the value of the Carefusion business - 12% of sales. As I said in a previous post, i think that the profit impact of this will be substantially greater. Being OEM this business was probably won at lower margins, let's say 35%, if this is the case then the loss would plunge MLA into a loss. More importantly, it would put a large hole in their cash generation (which by the way was a good result).
To me, the ICU offer looks like a good result for the company and us shareholders. without it the company would no doubt have to go back to the market to do a capital raise (at what price???) to do any sort of acquisition, or even bolster their operating cash.
We would all like more than 8.6c but I'm guess that this is the best that is on offer.
MLA Price at posting:
8.4¢ Sentiment: Sell Disclosure: Held
