Reading between the lines of the announcement I suspect the decision to sell had more to do with the business being quite small in comparison to the rest of the business and is probably taking up a disproportionate amount of management time.
Difficult to assess exactly how small this business is in the scheme of things (as management reports Perth Brake Parts results together with FluidDrive as 'Automotive Component Manufacturing), however:
• AMA's Australian Microcap Investment Conference Oct-15 preso showed this segment was c.3% of FY15 sales
• Business was acquired by Allomak (pre name change to AMA) in Jan-07 for $2.7m.
I'm not getting to worked up about it. Will probably perform better under a management team that can focus more time on it.
AMA Price at posting:
94.0¢ Sentiment: Hold Disclosure: Held
