Valmont Selling Stake in Bilston Investments

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

On Thursday, industrial conglomerate Valmont Industries (NYSE: VMI  ) announced that it has sold its stake in South African manganese producer Bilston Investments Proprietary Limited. A trio of South African purchasers will buy Valmont's 49% interest in Bilston for a total purchase price of $30 million.

In a statement, Valmont noted that Bilston contributed about $5.1 million to its after-tax profit in 2012, or less than 2.2% of company earnings. Still, this implies the company is getting less than six times earnings for its stake in the company -- a considerable discount to the 17.4-times-earnings valuation its own shares command.

Unsurprisingly, investors are reacting negatively to the news, bidding Valmont shares down 1.4% in Thursday trading, to $152.26.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2270655, ~/Articles/ArticleHandler.aspx, 10/1/2016 3:11:00 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:02 PM
VMI $134.57 Up +0.91 +0.68%
Valmont Industries CAPS Rating: *****