Jefferies Financial Group Inc. (NYSE: JEF) has announced the sale of substantially all of Opnet's operations to Wind Tre S.p.A., a subsidiary of CK Hutchison Group Telecom Holdings Ltd. The sale agreement involves a consideration of €485 million, subject to certain adjustments, with the majority to be paid in cash and the rest in the form of notes issued by CKHGT. This transaction is expected to result in approximately €320 million in final value to Jefferies, exceeding the company's current carrying value.
In addition to this sale, Jefferies recently finalized the sale of Foursight Capital LLC and Golden Queen, in line with its strategic simplification plan. As a result, the company will reclassify the remaining legacy investments as "other investments" in its asset management reportable segment in fiscal 2024, with the core focus now being on HomeFed, a real estate development company specializing in mixed-use, master-planned communities.
Rich Handler, CEO of Jefferies, and Brian Friedman, President of Jefferies, expressed their satisfaction with the strategic shift, stating, "We are thrilled to be back to our roots of focusing exclusively on building the very best 'pure play' global investment banking firm." They also highlighted the company's efforts to focus on its core business and emphasized the potential of Jefferies as it moves forward in 2024 and beyond.
Jefferies Financial Group Inc. (JEF) shares experienced a slight decline of -1.2%, with the current trading price at $40.13.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $5,010 | $5,359 | $6,880 | $8,945 | $7,149 | $7,281 |
| Revenue Growth | n/a | 6.97% | 28.4% | 30.01% | -20.08% | 1.84% |
| Interest Income (MM) | $89 | $87 | $1,030 | $932 | $1,170 | $2,339 |
| Net Margins | 21% | 18% | 11% | 19% | 11% | 5% |
| Net Income (MM) | $1,051 | $960 | $770 | $1,677 | $782 | $333 |
| Depreciation & Amort. (MM) | $105 | $153 | $158 | $157 | $173 | $127 |
| Earnings Per Share | $3.19 | $3.03 | $2.65 | $6.13 | $3.06 | $1.41 |
| EPS Growth | n/a | -5.02% | -12.54% | 131.32% | -50.08% | -53.92% |
| Diluted Shares (MM) | 329 | 317 | 277 | 272 | 256 | 232 |
| Capital Expenditures (MM) | $32 | $1,707 | $186 | $166 | $224 | $173 |
| Total Debt (MM) | $7,618 | $8,337 | $8,352 | $9,126 | $8,774 | $9,462 |
