Time to relook at Procurri

16 Jan 2021 16:45 #25599 by walterlim
In 2019, the proposed deal of $150m to sell the third party maintenance unit fell through. This was cateogrised to their lifestyle services, one of the two business segments in 2019. One of the reason given stated in the subsequent financial report was that it proved challenging to de-couple the business and value the TPM(third party maintenance) accurately, hence unable to reach and agree on a final price.

The manangement subsequently announced their focus on integrating all their business units as one. It is also noteworthy to observe that in the latest financial result, the origignally two business segments have been carved out into three, mainly, IT asset disposition, IT distribution and Lifecycle.

TPM was originally cateogrised as Lifecycle Services together with IT asset disposition, In H12019, the lifecycle services sales value was at about 36million, or 33% of total revenue. This was valued at $150million in the proposed deal. If theTPM business is valued at $150m and forms only 33% of the entire business, wouldnt the company as a whole be valued at at least 3 times more of current price?

Current market cap is 85m and the TPM is valued at $150m. Also, the fact the the mangement has carved out the business segment from 2 into 3 could imply they are planning to revive another proposed deal, this time easier to de-bundle.Otherwise, it could also mean the managemnet intends to look out for a entire takeover deal. The time is ripe as the cloud technology is gaining more traction post covid.

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18 Jan 2021 13:59 #25600 by walterlim
Counter has risen 17% today since my first post on the undervaluation. Way more to go in my opinion. Heavily vested

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20 Jan 2021 17:40 #25604 by walterlim
another possible way of unlocking value is to list one of its business segment.

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