Despite a strong start for the S&P/ASX 200 (INDEXASX: XJO), shares of Veda Group Ltd (ASX: VED) have been hammered down 12 cents or 5.2% today following reports that Pacific Equity Partners (PEP) is undertaking a sale of its 31.5% or $615 million stake in the company overnight.
The Australian Financial Review, for instance, cited sources suggesting that PEP had asked a number of investment banks to pitch for the shares which would then be sold on Monday night and Tuesday morning. However, Veda Group issued a response to the market stating that PEP had informed the business it was not undertaking such a sale.
Veda Group is Australia's leading provider of credit data and analytical information. Not only does the company have a strong track record for revenue and earnings growth, it also has an extremely promising future – in large part thanks to the recent introduction of the Comprehensive Credit Reporting regime which will enhance its product offerings and empower businesses to make more informed decisions.
I happily own shares in Veda Group and view today's hammering as an excellent opportunity for investors to buy. Although the shares aren't trading in bargain territory, I believe they will be worth a lot more in five, 10 or even 20 years' time.
