SMB United -- takeover bid by Boer

[dzwm87]

You may refer to pg 57 of EDMI IPO Prospectus.

Smart meters are normally sold to sales agents who in turn sell them to electrical utilities company.

[portuser]

EDMI has been modest in its achievements. It is supplying smart meters to Contact Energy of New Zealand, and its meter is displayed by Contact:

http://www.contactenergy.co.nz/web/findo...ct?vert=fh

Contact is retailing electricity to one-third of homes in New Zealand, and the company has to take many years to install meters in all its clients' homes.
EDMI has not been explicit about the major role it plays in the smart metering scheme in New Zealand.

EDMI's annual report states that "Europe offers more new opportunities as countries commence smart metering programs in a race to comply with European Union directives by 2020.". Smart meters will be installed in 23 million homes in UK. EDMI sold only 0.5 million smart meters last year; its annual sales are low and does not have to count on early rollout in UK to boost its profit.

I understand that the useful features of smart meters are being recognised by many electricity players. Apart from the obvious advantages of remote reading and variable electricity pricing, smart meter also enables electricity retailers to require delinquent consumers to prepay, and detect electricity theft. Retailers do see business sense in installing smart meters.

[dzwm87]

40c cash offer by Osaki Electric..

quite a lucky guess by me..

[shanrui_91]

The Undertaking Shareholders have undertaken to accept the Offer in respect of an
aggregate of 183,038,039 Shares held by them as at the Announcement Date, representing
approximately 37.42 per cent. of the Shares in issue as at the Announcement Date.

So in this case, does it means that a counter offer is impossible from Boer?

[dzwm87]

The Undertaking Shareholders have undertaken to accept the Offer in respect of an
aggregate of 183,038,039 Shares held by them as at the Announcement Date, representing
approximately 37.42 per cent. of the Shares in issue as at the Announcement Date.

So in this case, does it means that a counter offer is impossible from Boer?

I will believe so, given the nature of the irrevocable undertaking.

Unless there is a possibility somebody else (or Boer) up the bid immediately tomorrow or any time before the Offer Document is released? Then everybody else except the directors will have rejected Osaki Offer and by then, the bid will fail and of which the directors can accept the new bid... but then again... such is rare..

[xlandjy]

40 cents still on the low side. Difficult to decide. If 50 cents, I will not hesitate to let go.

[dzwm87]

40 cents still on the low side. Difficult to decide. If 50 cents, I will not hesitate to let go.

Like I mentioned before, anything above 50c is too optimistic in current global outlook.

Anyway, the directors have agreed to their irrevocable undertaking. The deal is more or less done. The only option is left with Boer to come up with a sudden higher bid before the Offer Document by Osaki is being released - which is rare, IMO.

---

Also, Osaki's acceptance threshold for the offer to become unconditional is 50%. With irrevocable undertaking from the directors at 37.42%, it will be easy for them to snatch up another 12.58%. Just compared to latest acceptance level to be around 20% for Boer's 0.32 offer.

Another reason for a done deal.

[xlandjy]

Its not done yet. Now transacted 0.405, half a cent above offer price... more to come..

[dzwm87]

Time & Sales as of now:
09:37:03 0.400 240,000 Sell Down
09:36:49 0.400 9,000 Sell Down
09:29:25 0.400 20,000 Sell Down
09:23:52 0.405 6,000 Buy Up
09:23:52 0.405 18,000 Buy Up
09:20:47 0.405 20,000 Buy Up
09:18:56 0.400 15,000 Sell Down
09:16:31 0.400 70,000 Sell Down
09:14:39 0.400 100,000 Sell Down
09:14:27 0.400 6,000 Sell Down
09:14:11 0.400 18,000 Sell Down
09:11:33 0.405 5,000 Buy Up
09:11:23 0.400 170,000 Sell Down
09:11:15 0.400 30,000 Sell Down
09:08:27 0.405 3,000 Buy Up
09:06:58 0.400 20,000 Sell Down
09:05:44 0.400 102,000 Sell Down
09:05:44 0.400 198,000 Sell Down
09:02:29 0.400 20,000 Sell Down
09:00:03 0.400 1,000 Sell Down
09:00:03 0.400 50,000 Sell Down
08:58:55 0.400 50,000 Sell Down
08:58:55 0.400 120,000 Sell Down
08:58:55 0.400 100,000 Sell Down
08:58:55 0.400 35,000 Sell Down
08:58:55 0.400 400,000 Sell Down
08:58:55 0.400 26,000 Sell Down
08:58:55 0.400 824,000 Sell Down
08:58:55 0.400 80,000 Sell Down
08:58:55 0.400 50,000 Sell Down
08:58:55 0.400 46,000 Sell Down
08:58:55 0.400 294,000 Sell Down
08:58:55 0.400 800,000 Sell Down
08:58:55 0.400 20,000 Sell Down
08:58:55 0.400 6,000 Sell Down
08:58:55 0.400 40,000 Sell Down
08:58:55 0.400 15,000 Sell Down
08:58:55 0.400 200,000 Sell Down
08:58:55 0.400 121,000 Sell Down
08:58:55 0.400 299,000 Sell Down
08:58:55 0.400 200,000 Sell Down
08:58:55 0.400 5,000 Sell Down
08:58:55 0.400 25,000 Sell Down
08:58:55 0.400 100,000 Sell Down
08:58:55 0.400 195,000 Sell Down
08:58:55 0.400 300,000 Sell Down
08:58:55 0.400 300,000 Sell Down
08:58:55 0.400 20,000 Sell Down
08:58:55 0.400 10,000 Sell Down
08:58:55 0.400 50,000 Sell Down
08:58:55 0.400 50,000 Sell Down
-----------------------------------------
only 52000 shares traded at 0.405 - possible to be some punters betting on an up bid.. the rest are traded at 0.40, which is likely to be bought by Osaki themselves.

[xlandjy]

I heard, (pl note: heard) from a friend that there is an analyst report in HK which mentioned that Boer may up its bid... This could be the possible reason...

There is still a chance for Boer or another fresh bidder despite the commitment made by the substantial shareholder which amounts to more than 35%. The other 60 plus % have not spoken.

So, I suggest to other mosquito shareholders like me, DO NOT SELL at the moment.