Shares

Capita shares tumble after lower than expected ESS bids

The share price of Capita (LON: CPI) tumbled as lower than expected offers were received from the potential sale of its ESS unit.

According to Bloomberg, inside sources have revealed that the company has received lower than expected bids for the Education Software Solutions division.

It was hoping to raise between £500m-£700m from the sale in a bit to pay down its spiraling debt.

A number of firms including Bain Capital and TPG did not submit binding bids and dropped out of the process.

If it was successful in raising £500m from the sale, it would have raised more than its current market value of £430m.

With many investors pointing to the value of Capita’s assets being potentially more than its market value, news that ESS is not valued as highly as touted will be a bitter blow.

Capita’s share price is currently trading at below 26p following a near 8% drop today.

The struggling outsourcer is now considering whether to push on with the sale or retain the business and try to sell off other assets.

Let's Talk

ODX - guess on how much revenue c …I guess we'll find out more later this month as they are upda … Read More
ISA or share dealing accountJust start with an ISA. If you get past £10k in trading then rethi … Read More
Can you speak to ZOE management n …Hopefuly you are taking more requests Surface Transforms  Read More
People who trash AIM...Amen. There's some people who think they are really smart, bu … Read More
Christmas is saved? Boris Johnson … The government is reportedly planning to conduct 3 million COVID- … Read More
Hey, profit awaits! Free Sharebuyers Newsletter

Receive the hottest share tips and must-know investing information you can profit from.