*Official* Neratel (SGX: N01)

[Carnage]

.49 unconditional cash offer again.

How Paul? Voting no again?

 

[stam]

Again... Another company coming for this baby....

 

[Carnage]

"The Offer Price of S$0.49 values the whole of NeraTel at about S$177.3 million. While it represents a discount of 5.8% from the last closing price on 19 November 2012, it also represents a premium of 1.7%, 10.2%, and 10.6% over NeraTel’s three-month, six-month, and 12-month volume weighted average prices per share, respectively, as well as a premium of about 184.7% to the net asset value (NAV) per share as at 30 September 2012"

I don't know what the FA has been smoking.

 

[bhalimking]

Please noooo voting again. Price not attractive enough though much above valuation.

 

[bliz1984]

quite rubbish these offers. *angry*

 

[Carnage]

Just a rough gauge, how many going to vote against?

#keechiu

 

[daylight]

sold my 5 lots last week at 0.525

 

[doody_]

Lol how come the offer price is lower than the current market price....

 

[Paul Lee]

Guys, pls note that its the stupid takeover code that is forcing Northstar to make an mandatory offer. There's no need to get upset about the low price either. Eltek is willing to sell their 50.05% at 49c and the takeover code required Northstar to make the same offer to all shareholders.

I seriously dun think they want to take Neratel private. They just want control and they got it.

Pls note that this is a Mandatory Unconditional Offer. There is no EGM and no voting. You vote with your mouth (or letter). If you are happy, you sell to Northstar. If you are not, just ignore the letter.

There's no way Northstar can get another 39.95% to make an compulsory acquisition of shares. So just chill. I find the drama over at MIIF more upsetting (but that's for another thread)

 

[fbb005]

Guys, pls note that its the stupid takeover code that is forcing Northstar to make an mandatory offer. There's no need to get upset about the low price either. Eltek is willing to sell their 50.05% at 49c and the takeover code required Northstar to make the same offer to all shareholders.

I seriously dun think they want to take Neratel private. They just want control and they got it.

Pls note that this is a Mandatory Unconditional Offer. There is no EGM and no voting. You vote with your mouth (or letter). If you are happy, you sell to Northstar. If you are not, just ignore the letter.

There's no way Northstar can get another 39.95% to make an compulsory acquisition of shares. So just chill. I find the drama over at MIIF more upsetting (but that's for another thread)

What happened to MIIF?

 

[Carnage]

But Paul, you not worried management change? Northstar are just another PE fund, they might screw up this company.

 

[Paul Lee]

Neratel just released its full year result after an eventful 2012 that had a takeover attempt by STeng quashed by shareholders before want-away Eltek finally sold their stake to Northstar.

FY 2012 Results
Presentation Slides

Revenue: 178.8 mil (+14.5%)
Gross Profit: 55.9 mil (+25.3%) [Gross Margin: 31%]
Net Profit: 13.4 mil (+43.6%) [Net Margin: 7.5%]
EPS: 5.36c (+1.63c)
Cash & Equivalent: 43.7 mil

Final dividend declared: 4c (6.7% yield at last done price of 59c)
Payable: 16 May 2013
Ex-Date: 2 May

 

[Carnage]

Still the same question, do you think the new management can guide the company to greater heights moving forward? Given the new changes effected last month.

 

[Paul Lee]

Still the same question, do you think the new management can guide the company to greater heights moving forward? Given the new changes effected last month.

I dun see any impact for the moment as the core senior management team are still in place. Samuel is still CEO and Chandra is Chairman.

The directors nominated by the previous majority owner Eltek have all resigned.

Resignation of Directors

The new directors nominated by the new owner has been appointed:
APPOINTMENT OF NON-EXECUTIVE DIRECTORS AND INDEPENDENT DIRECTOR /
CHANGES IN THE COMPOSITIONS OF BOARD AND BOARD COMMITTEES

If Samuel and Chandra were replaced or resigned, then I would been worried cos they have been with Neratel for as long as I have been vested in the company. So as of now, I dun see anything for me to reassess my investment in the company. In fact, I'm thinking of adding more.

 

[Carnage]

I dun see any impact for the moment as the core senior management team are still in place. Samuel is still CEO and Chandra is Chairman.

The directors nominated by the previous majority owner Eltek have all resigned.

Resignation of Directors

The new directors nominated by the new owner has been appointed:
APPOINTMENT OF NON-EXECUTIVE DIRECTORS AND INDEPENDENT DIRECTOR /
CHANGES IN THE COMPOSITIONS OF BOARD AND BOARD COMMITTEES

If Samuel and Chandra were replaced or resigned, then I would been worried cos they have been with Neratel for as long as I have been vested in the company. So as of now, I dun see anything for me to reassess my investment in the company. In fact, I'm thinking of adding more.

At current price? You think the business can still expand further in MENA?

 

[Paul Lee]

Goodness, looks like I spoke too soon.

Chandra has resigned as Chairman along with long time director Sitoh Yih Pin.

RESIGNATION OF INDEPENDENT DIRECTORS /
CHANGES IN THE COMPOSITIONS OF BOARD AND BOARD COMMITTEES

Now I had gone from not worried to 'half worried'. So for now wont be thinking of adding more and see how things develop further. So now only Sam is left of the old BOD.

 

[bhalimking]

Big management changes. Good or bad only time will tell.

But i like the old managements at least.

 

[Carnage]

Both of them related to PAP.

Although I'm not worried about Sitoh since he's in Audit, not so critical role in terms of profit making.

 

[Paul Lee]

Hiaz. The fact that they are both related to PAP is just an incidental fact and not related to the discussion so let's not go there.

I agree with Sitoh's role but the chairman of the board wield much greater influence and often is the chap responsible for charting the direction of the company. Chandra is investor friendly and works well with Samuel.

The next chairman may not be those things so I think we need to watch development closely.

Management change need not be a bad thing. Neratel does not have much foothold in Indonesia so maybe Northstar can open doors over there and brings in new business. Maybe the new chairman may feel that the company has been too conservative with it dividend policy and pay more. Or the reverse could be true and dividend is slashed to preserve cash for business expansion.

So yes. Only time will tell.

 

[Carnage]

It is telling that their 4th quarter results were not as stellar as the rest of the year. Year on year the company outdid itself from previous years but I was also disappointed by the revenues for the last quarter.

Could it be that Northstar has started to exert some influence on the board? Time will tell, for now I will just hold.