Sage Group: Seven asset disposals at the same time
NEUTRAL, Fair Value 330p vs. 340p (-2%)
We reiterate our Neutral rating but shave our DCF-derived fair value to 330p from 340p following the announcement of seven non-core asset disposals on Friday for an aggregate amount of GBP93.4m, o/w GBP81.9m is payable on completion. These disposals are consistent with Sage’s strategy to refocus on core products. The deals are slightly dilutive in aggregate (est. -3% for FY13 and est. -6% for FY14) but such a dilution is intended to be offset by further returns to shareholders via share buy-backs, dividends or acquisitions.
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