Eclipx Group’s Share Price Up 24% on $60 million Sale

Today, Eclipx Group Ltd [ASX:ECX] announced the sale of their GraysOnline and AreYouSelling businesses to Quadrant Private Equity for $60 million.

In afternoon trading, Eclipx Group’s Share Price skyrocketed 25.29%, to $1.62 apiece.

The company also appointed Jason Muhs as acting CFO.

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Eclipx Group’s share price benefits refocus

Following the release of its first half-year results, ECX set its sights on refocusing its core fleet leasing and novated business to a more stripped back outline by its simplification program.

Eclipx CEO Julian Russell said:

‘[T]he management team is intensely focused on progressing our simplification strategy. The sale of both Grays and AreYouSeeling is an important early step…

‘[W]e are also seeing progress on the other non-core and sub-scale business.’

Eclipx’s simplification program also involves steps to improve the performance of the company’s core leasing and businesses, such as:

‘[R]esizing the cost base to reflect the simplified business model, resetting of its corporate debt facilities to reflect the future structure of the business, establishing a clearly define strategic direction for the simplified core business.’

EXC is set to give updates on the initiatives over time.

Jason Muhs will become acting CFO effective today, taking over from Garry McLennan after his retirement.

Mr Russel commented this:

Together with other members of the leadership team, Jason has been instrumental in the development and ongoing execution of the simplification program.’

Eclipx Group’s share price outlook

The rise in Eclipx Group’s share price has been a positive reaction to the steps EXC has been making.

But investors will have to keep an eye on the company’s progress.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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