HighCo Moves Forward with Strategic Sale of High Connexion
HighCo has made an important announcement regarding its subsidiary, High Connexion. The company has signed an agreement to sell its 51% stake in High Connexion to a group of investors, which includes Albarest Partners and Guillaume Guttin. This decision is a key part of HighCo's plan to enhance its focus on its primary business sectors.
Overview of the Agreement
Through the agreement, HighCo intends to streamline its operations and concentrate on its two main divisions: Activation and Consulting & In-store media selling. The divestiture is expected to bring in substantial resources that will further fuel development and innovation within these core areas.
Financial Highlights of High Connexion
High Connexion has been a significant contributor to HighCo's overall revenue. In recent years, it generated a contribution margin of €8.65 million and reported total revenue of €60.18 million, highlighting its strength in mobile marketing solutions. This represents a notable 12.5% of HighCo's gross profit, underscoring the subsidiary's pivotal role in the company.
Strategic Direction of HighCo
Looking ahead, HighCo aims to channel the income from this transaction into other growth initiatives, including an exceptional dividend of €1 per share based on the sale. The strategic move underscores the company’s commitment to innovation and enhancing shareholder value.
Future Developments
In accordance with the conditions of the agreement, HighCo will keep the market updated on the progress and completion of the sale. The company anticipates that these conditions will be satisfied by the end of June. Once finalized, further financial impacts will be disclosed in an upcoming earnings report, scheduled for release soon, which will provide more insight into HighCo’s performance for the year.
About HighCo
HighCo has established itself as a prominent player in the marketing and communications sector, supporting both brands and retailers in accelerating retail transformation. The company is recognized for its commitment to CSR, having achieved a Gold rating from EcoVadis, placing it in the top 5% of companies for responsible business practices.
Headquartered in France, HighCo operates with a workforce of around 450 employees and is publicly traded on Euronext Paris. This stature allows it to be included in several indices dedicated to small and mid-cap companies, affirming its stature within the financial markets.
Frequently Asked Questions
What is the nature of the agreement HighCo has signed?
HighCo has signed an agreement to sell its 51% stake in its subsidiary, High Connexion, to a group of investors.
Who are the investors involved in this transaction?
The investors include Albarest Partners and Guillaume Guttin, who will take over High Connexion.
What does this sale mean for HighCo's operations?
This sale is part of a broader strategy to focus on HighCo's core divisions, Activation and Consulting & In-store media selling.
How will the company use the proceeds from this sale?
The funds from the sale will be used to propose an exceptional dividend and to bolster growth and innovation initiatives within HighCo.
When can we expect further updates about the sale?
HighCo will provide updates on the sale as it progresses, with major disclosures expected in their next earnings report.
