The $115m Amaysim netted from a sale of Click Energy to AGL Energy offers further evidence the company overpaid for the business when it was acquired under previous management, according to market analysts.
The division, purchased in 2017 for $120m, has contributed strongly to the group’s earnings before interest, tax, depreciation and amortisation over the past three years.
But it has faced margin pressure.
Some have believed that this sale paves the way for Singtel’s Optus to buy Amaysim, which provides SIM-only mobile plans, with the telecommunications provider looking on again and off again for years at the operation.
Recently, there has been some talk that Optus has once again been circling.
Takeover talk aside, the challenge for Amaysim now will be to quickly reduce costs and streamline its overheads.
The key remaining value for Amaysim is its 836,000 mobile subscribers which could be attractive to Vodafone or Telstra.
It currently has a wholesale contract with Optus that expires in 2022, so Amaysim customers may change providers at that time if another group offers a better deal than Optus.
One option for growth is for Amaysim to acquire more mobile subscriptions from Optus.
Working on the sale of Click Energy for Amaysim was Luminis Partners.
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