The Amaysim (ASX:AYS) share price has rocketed up today. Here's why.

The amaysim share price will be one to keep an eye on following its announcement regarding the sale of its mobile business.

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The Amaysim Australia Ltd (ASX: AYS) share price has rocketed up 10.45% to 74 cents today. This follows the company's announcement this morning of an deal to sell its mobile business to Optus.

Second major asset sale in 2 months

On 31 August Amaysim announced it was selling its subscription energy business, Click Energy, to AGL Energy Limited (ASX: AGL) for $115 million.

The final net proceeds from this sale were $51.9 million. That figure is after the company repaid $53.1 million of bank debt and transaction costs.

Today's announcement regards the sale of Amaysim's remaining operations, its mobile business, to Optus Mobile Pty Limited for a cash consideration of $250 million.

What's in it for Amaysim's shareholders?

The company estimates somewhere between $207–$226 million will be distributed to shareholders. That includes the final net proceeds from the sale of its Click Energy business. This would represent 67–73 cents per share.

Amaysim expects there will be additional value from franking credits, up to around 11 cents per share, attached to "certain components of the distribution".

Amaysim CEO Peter O'Connell said:

We are delighted to announce the proposed sale of Amaysim's mobile business to our long-term strategic wholesale partner, Optus. Amaysim has a first-class team that cares for its customers, which Optus has recognised through this acquisition. We believe Optus, with its deep knowledge of our operations, is well-placed to look after our customers and staff and take the growth of the business to the next level. 

What's next for Amaysim shares?

The sale of Amaysim's mobile business remains conditional on shareholder approval. The company expects to hold an extraordinary general meeting in January 2021. It states that the sale to Optus is not subject to any additional due diligence of financing conditions. The sale agreement has received all needed regulatory ticks of approval.

If shareholders vote to approve the sale, amaysim will offer transitional services to Optus for a 3-month period. Following that period, amaysim would then begin de-listing from the ASX and winding up.

Amaysim's board is unanimous in recommending shareholders vote for the sale of its mobile business, barring a superior proposal.

The Amaysim share price closed at 67 cents yesterday and is up 10.45% at 74 cents in early trade today.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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