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Shares in DCC (LSE:DCC) fell 7% in a day earlier this week. And I took the opportunity to add to my existing investment in the FTSE 100 company.
The business is in an interesting position and its latest news disappointed investors. But while I can see why, I think the lower share price is an opportunity.
What’s the news?
At the moment, DCC consists of three divisions – energy, healthcare, and technology. But its plan for the future is to focus on its energy business and divest the others.
Earlier this week, the company announced it had agreed to sell its healthcare unit for £1.1bn. This was below the £1.3bn analysts had been hoping for and the stock fell as a result.
The difference might not seem like much, but it’s a 15% discount. And it means a lower return for investors, which is where the excess cash generated by the sale is set to go.
That’s why the…
