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(30-07-2012, 09:50 AM)KopiKat Wrote: It'd appear so...
In the 1st place, I was wondering why they embarked on a Scheme Offer instead of immediately buying over Eltek's 50.05% stake and then doing a General Offer + mopping up shares in the open market. They'd have immdiately gotten majority control even if they don't succeed in privatising NeraTel.
I think this was the questions on a lot of shareholder's mind at the scheme meeting too. According to Jorgen Larsen (Non-Exec Director and Adviser to Eltek ASA), Eltek tried to sell their 50.05% stake to companies in many countries including Asia, China and ME. It appears that no one is interested in just buying over Eltek's stake.
Personally I still find it hard to believe that Eltek spend nearly 2 years trying to sell their stakes and all they managed to attract was a half-hearted offer from ST Eng.
So either the company is really being over-valued by Mr. Market and its shareholders or there are some pertinent and material facts not in the public domain that stop companies from buying into what appeared to be a fundamentally strong and well run company.
Frankly the whole thing is a little fishy or maybe I'm being watching too many conspiracy theories shows.  (Vested)
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(30-07-2012, 02:23 PM)lonewolf Wrote: (30-07-2012, 09:50 AM)KopiKat Wrote: It'd appear so...
In the 1st place, I was wondering why they embarked on a Scheme Offer instead of immediately buying over Eltek's 50.05% stake and then doing a General Offer + mopping up shares in the open market. They'd have immdiately gotten majority control even if they don't succeed in privatising NeraTel.
I think this was the questions on a lot of shareholder's mind at the scheme meeting too. According to Jorgen Larsen (Non-Exec Director and Adviser to Eltek ASA), Eltek tried to sell their 50.05% stake to companies in many countries including Asia, China and ME. It appears that no one is interested in just buying over Eltek's stake.
Personally I still find it hard to believe that Eltek spend nearly 2 years trying to sell their stakes and all they managed to attract was a half-hearted offer from ST Eng.
So either the company is really being over-valued by Mr. Market and its shareholders or there are some pertinent and material facts not in the public domain that stop companies from buying into what appeared to be a fundamentally strong and well run company.
Frankly the whole thing is a little fishy or maybe I'm being watching too many conspiracy theories shows. (Vested)
Nera Telecomm is basically just a distributor and a system solution provider.
The danger of buying Nera is that the Nera equipment source, Ceragon, may stop supplying NeraTel.
Or, Ceragon may setup another company to compete with Nera.
But, I thought it is kind of stupid since Nera network of business in asia is pretty extensive and also, the group's expertise and experience in provides system solutions.
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(30-07-2012, 02:54 PM)yeokiwi Wrote: (30-07-2012, 02:23 PM)lonewolf Wrote: (30-07-2012, 09:50 AM)KopiKat Wrote: It'd appear so...
In the 1st place, I was wondering why they embarked on a Scheme Offer instead of immediately buying over Eltek's 50.05% stake and then doing a General Offer + mopping up shares in the open market. They'd have immdiately gotten majority control even if they don't succeed in privatising NeraTel.
I think this was the questions on a lot of shareholder's mind at the scheme meeting too. According to Jorgen Larsen (Non-Exec Director and Adviser to Eltek ASA), Eltek tried to sell their 50.05% stake to companies in many countries including Asia, China and ME. It appears that no one is interested in just buying over Eltek's stake.
Personally I still find it hard to believe that Eltek spend nearly 2 years trying to sell their stakes and all they managed to attract was a half-hearted offer from ST Eng.
So either the company is really being over-valued by Mr. Market and its shareholders or there are some pertinent and material facts not in the public domain that stop companies from buying into what appeared to be a fundamentally strong and well run company.
Frankly the whole thing is a little fishy or maybe I'm being watching too many conspiracy theories shows. (Vested)
Nera Telecomm is basically just a distributor and a system solution provider.
The danger of buying Nera is that the Nera equipment source, Ceragon, may stop supplying NeraTel.
Or, Ceragon may setup another company to compete with Nera.
But, I thought it is kind of stupid since Nera network of business in asia is pretty extensive and also, the group's expertise and experience in provides system solutions.
lonewolf,
Thanks for the info!
yeokiwi,
I believe Ceragon is already a competitor to NeraTel.
Also, don't forget that NeraTel is not only in Telecom but also in InfoComm, which was contributing a bigger share of Revenue and Profits in recent years. Even in Telecom, they're also carrying other brands although it's likely Nera brands is the main product for this segment.
Further, I see their core competence to be in System Integration + Support, so, it's not inconceivable for them to switch to another Principal if they can get the distributorship.
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30-07-2012, 11:05 PM
(This post was last modified: 30-07-2012, 11:06 PM by Liubei.)
thanks.previously 60/6-----> now 9/6 become clearer now...thanks
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Anything brewing? Rise to 43 cts just now
The thing about karma, It always comes around and bite you when you least expected.
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(06-09-2012, 02:40 PM)WolfT Wrote: Anything brewing? Rise to 43 cts just now
Nothing brewing here except Kopi and Teh... 
Don't tell me you are out again... 
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The thing about karma, It always comes around and bite you when you least expected.
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The thing about karma, It always comes around and bite you when you least expected.
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