Neratel sale of payment solution business, is it good?

April 29, 2016 at 3:06 pm Leave a comment

Disclosure:I am vested in Neratel, so opinion will be biased.

I attended Neratel AGM yesterday, management seems quite confident of expanding the payment solution business(in fact, new subsidiaries were set up last year to expand this business segment), so i was surprised that today neratel announced that a third party has approached it to buy the payment solution business, though no agreement has been reached yet.

If payment solution business is sold, Neratel will lose recurring revenue from lease of POS system. Although the sale of this business will reduce capex, but Neratel turnover will become more unpredictable. Of course, every business is for sale at a good price. Let’s wait for further developments.

Entry filed under: Investing, Watch your step. Tags: .

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