What: In what could be considered exquisite timing, lotteries and wagering group Tatts Group Limited (ASX: TTS) has on Monday morning announced the sale of its United Kingdom (UK) based slots business, Talarius, for $210 million.
So What: Given the significant share price pressure on a range of UK-exposed stocks today, the timing of Tatts' divestment of Talarius could hardly have been better.
Indeed, the only other company which has perhaps timed its UK exit even better is National Australia Bank Ltd (ASX: NAB), with its divestment of its UK banking operations CYBG PLC CDI 1:1 (ASX: CYB) back in February.
Now What: With Tatts' share price trading flat today, the stock is not necessarily offering up the bargains that other shares caught up in the 'Brexit' sell-off could be.
Despite this, the sale of the UK slots business would appear to be a positive move considering the performance of Talarius over the past few years.
Importantly, Tatts has also provided a trading update which states that net profit after tax from continuing operations for the full year is expected to range between $355 million and $365 million, with growth rates and margins trending well too.
With a market capitalisation of $5.65 billion this implies a price-to-earnings ratio of 15.7 times at the mid-point of guidance. That doesn't appear to be a demanding market valuation considering the high quality, defensive nature of the group's assets.
