RHC -2.67%: Announced today the sale of their Sime Darby JV, with proceeds of the sale ($935m pre-tax) earmarked to pay down debt, reducing gearing to 2.5x and interest costs by about $55m annually. We thought this announcement was a positive one on a number of fronts, a better balance sheet, and lower gearing, while potentially removing one of the variables/complicating factors that negatively impacted corporate interest last year.
- Overall, we thought this was a more positive update than the market gave them credit for.
MM remains cautiously long RHC
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