Coinstar shares up modestly on deal to sell kiosks
Shares of Coinstar rise modestly on deal to sell some of former NCR kiosks
NEW YORK (AP) -- Coinstar Inc. shares rose modestly Tuesday on news that the company's Redbox subsidiary reached a deal to sell some of its DVD rental kiosks that it bought from NCR Corp. last year.
As part of the sale, the company based in Bellevue, Wash., also licensed certain software and related patents purchased from NCR. Proceeds from the sales and the licenses are expected to total about $17.9 million, Coinstar said in a regulatory filing late Monday. The kiosks are being sold to third parties that were not named in the filing.
The deals are also expected to generate a tax benefit that will boost the company's second-quarter profits by between 62 cents and 69 cents per share.
The deals are expected to close throughout the second and third quarters of 2013, Coinstar said.
Coinstar shares rose 96 cents, or 1.7 percent, to $58.84 in afternoon trading, after peaking at $60.35 earlier in the day. Over the past 52 weeks, the company's shares have traded between $40.50 and $71.82.
