BATM to Generate $37 Million Through Asset Sales and Share Disposal as It Sharpens Focus on Cybersecurity and Networking (BVC)
https://uk.finance.yahoo.com/news/batm-generate-37-million-asset-072335781.html
Publish Date: 2026-06-22 03:23:00
Source Domain: uk.finance.yahoo.com
Using an unordered list, summarize the following article with between 4 and 8 key points. Cybersecurity ©Adobe Stock Images BATM Advanced Communications Ltd (LSE:BVC) has agreed a series of transactions expected to generate approximately $37 million, supporting its strategy to streamline operations and concentrate on its core networking and cybersecurity businesses. The company has entered into agreements to sell three of its four remaining non-core business activities, comprising seven separate entities, for a total consideration of $13.3 million. In addition, BATM will dispose of 96.8 million treasury shares currently held by Sunstring for approximately $23.3 million, representing a 33% premium to the recent market price. Following completion of the transactions, investor Haim Dor is expected to hold approximately 22% of the company. Capital to Support Growth and Strategic Expansion Management intends to use the proceeds to accelerate investment in research and development, expand commercial operations and pursue strategic acquisition opportunities. The transactions represent a significant step in BATM’s ongoing transformation programme, which aims to exit non-core activities and establish the group as a more focused provider of high-growth networking and cybersecurity solutions. The company believes the additional financial resources will strengthen its ability to invest in key technologies and capture opportunities across its target markets. Simplified Structure and Potential Additional Upside The disposal agreements include staged payment arrangements, as well as customary warranty and non-compete provisions. They also feature an earn-out mechanism that could provide BATM with additional proceeds if the acquired businesses are sold on at a valuation above an agreed threshold within the next two years. Subject to shareholder approval and the completion of a planned corporate reorganisation, the transaction will leave only one remaining non-core environmental monitoring subsidiary to be divested. Management believes this will further simplify the group’s structure and improve operational focus. The streamlined business model could also enhance balance sheet strength and provide greater flexibility for future strategic initiatives. Outlook BATM’s investment case continues to be affected by weak financial performance, with ongoing losses and recent cash outflows offsetting the benefits of revenue growth and a relatively low level of debt. Technical indicators offer only limited support at present, while valuation remains constrained by negative earnings. However, management believes that the disposal programme and renewed focus on higher-growth markets should create a stronger platform for long-term value creation. More about BATM Advanced Communications BATM Advanced Communications is a global technology company listed in both London and Tel Aviv, specialising in advanced networking infrastructure and cybersecurity solutions. The group provides secure managed networking, quantum encryption and cyber defence technologies to government agencies, critical infrastructure operators and enterprise customers. Through its focus on secure communications and next-generation networking, BATM aims to address the growing demand for resilient digital infrastructure and advanced cyber protection.
