AddValue Technologies

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#21
(26-03-2014, 11:02 AM)valuebuddies Wrote: I still don't get the point, I always believe that the Chinese's technology is far beyond what other Asian counterparts have, so what's the real intention for buying a small company with so much premium? Unless it is a corruption deal?

Anyway congratulation to those who vested, the price jumps 163% already...

fast track technology. Either BUY or STEAL. Like playing CIVILIZATION game.
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
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#22
http://infopub.sgx.com/FileOpen/AVT_Anno...eID=288637

Pay cheap and offload to market, must not be a good sign if not why so rush? Big Grin
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#23
High risks, High returns mate... caveat emptor

http://infopub.sgx.com/FileOpen/AVT-Resp...eID=288633


Published March 27, 2014
HOCK LOCK SIEW
Addvalue deal: do the values add up?
By R Sivanithy AND cai haoxiang
sivan@sph.com.sg
haoxiang@sph.com.sg
print |email this article
Addvalue27032014

If ever there was an example of a corporate development that was a candidate for a Trade With Caution (TWC) notice from the Singapore Exchange (SGX), it is Addvalue Technologies' latest announcement - PHOTO: SPH

Who exactly is the buyer and why would it pay the princely sum of $330m for a subsidiary of a company when that company, even after yesterday's massive share price rise, still only commands a market capitalisation of about $185m?

IF EVER there was an example of a corporate development that was a candidate for a "Trade With Caution" (TWC) notice from the Singapore Exchange (SGX), it is Addvalue Technologies' latest announcement. Addvalue said on Tuesday that it planned to sell its wholly owned subsidiary, Addvalue Communications (AVC), to a China buyer for an astounding $330 million in cash.

Since Addvalue's shares resumed trading yesterday following the announcement, its price has surged 9.4 cents or 149 per cent to 15.7 cents on heavy volume of 198 million shares traded. Clearly, the company has already gone a long way to achieving its goal of rewarding its loyal shareholders, an objective explicitly stated under its "rationale for the disposal".

Setting aside the bounty that shareholders are now enjoying, there are a few burning questions that have to be answered for the benefit of many sceptical observers. Who exactly is the buyer and why would it pay the princely sum of $330 million for a subsidiary of a company when that company, even after yesterday's massive share price rise, still only commands a market capitalisation of about $185 million?

Delve deeper into the numbers and more eyebrows are raised. First, AVC's net asset value (NAV) as at Dec 31, 2013, was about US$13 million, which means the buyer is paying an incredible premium of 1,883 per cent over the NAV.

Even more astonishing is that AVC's net tangible asset (NTA) value at end-2013 was about US$942,000, which means the purchase premium is 27,419 per cent of NTA.

By any standards, these are staggering numbers that beggar belief. Not surprisingly, in the absence of more information, many in the market are asking a) who exactly the buyer might be and b) whether the SGX should either ask the company for more details and/or issue its recently introduced TWC notice, until more details are released.

On who the buyer is, details are vague. Addvalue's announcement provides its name only in Chinese, saying its principal activities "relate to data security and related product development".

Going by hanyu pinyin, the name of the buyer translates to Tiancheng Hengsheng (Beijing) Technology Limited, an unlisted software and hardware development company.

But this is not conclusive. There is another company that shares the same Chinese characters and goes by the name of Secbase.

Secbase's website says it specialises in computer and network security, similar to the description given by Addvalue. Its products include data destruction systems, mobile terminal protection systems, army file protection systems, email security systems and secure login systems.

Secbase has an impressive customer list that includes Jiuquan Satellite Launch Centre, the Second Artillery Corps of China's People's Liberation Army (PLA), the PLA air force, China's Ministry of Foreign Affairs and China National Radio.

Addvalue last month announced that another wholly owned subsidiary, Addvalue Innovation Pte Ltd, was appointed by London-listed Inmarsat as a manufacturing partner for the latter's new maritime satellite service called Fleet One, aimed at the leisure maritime and fishing industry.

Based on these, market watchers say that since Addvalue and presumably AVC are involved in developing digital satellite technology, some premium is warranted. This is because there is growing interest in the technology and the associated intellectual property. The question, of course, is how much of a premium should be paid.

Addvalue said in its release that the price was determined based on an arm's length negotiation and on normal commercial terms using AVC's NAV, the fact that payment will be fully in cash, and that the initial 10 per cent deposit of $33 million is non-refundable, subject to certain, as yet, unspecified exceptions.

The rest of Addvalue's release also states that a commission of $15 million will be paid to an unnamed party who introduced the parties and brokered the deal. This party is described as owning less than 5 per cent of Addvalue, and is not related to the directors or substantial shareholders. Also provided are numbers to show the massive boost the deal would give to Addvalue's financials - if it goes through.

So, is a TWC warranted? SGX's actions over the past fortnight suggest that it only issues these alerts when the company has not made a material disclosure or replies "no" to a query as to whether it has yet to disclose material information. Since Addvalue has already made a significant announcement, this could explain the absence of a TWC on Addvalue's trading.

However, SGX should at the very least ask Addvalue for more information, such as the identities of the buyers and the unnamed broker. More details of what might cause the deal to be called off would also be useful.

It was not that long ago (2006-2008) that the local market witnessed several eye-catching, profit-guaranteed deals which involved enormous sums and China counterparties, none of which eventually materialised.

We are not suggesting that this same fate will befall the Addvalue deal but given the need for investors to tread with care, the exchange should consider issuing a TWC.
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#24
The first SGX company, benefited from the upcoming “One Belt, One Road” infrastructure project?

Addvalue surges on MOU for China’s ‘Belt and Road’ project’s communications needs

SINGAPORE (Oct 26): Addvalue Technologies ( Valuation: 0.00, Fundamental: 0.40) was up as much as 31% at 6.8 cents after announcing a memorandum of understanding (MOU) to develop and supply satellite communications equipment to support a Chinese infrastructure project to link China with Europe.

At 12.26pm, Addvalue was trading 29% higher at 6.7 cents.

The MOU covers the China-Pakistan Economic (CPEC) corridor of the so-called called “Belt and Road” project which covers 60 countries and opens up a market of 4.4 billion people. Construction of the CPE corridor is estimated to be completed in 2030 and to cost US$46 million ($64 million).

The CPEC corridor aims to connect the port of Gwadar in Pakistan to Kashgar in Xinjiang via highways, railways, oil and natural gas pipelines and optic fibre networks.
...
http://www.theedgemarkets.com/sg/article...ions-needs
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#25
(26-10-2015, 04:36 PM)CityFarmer Wrote: The first SGX company, benefited from the upcoming “One Belt, One Road” infrastructure project?

Addvalue surges on MOU for China’s ‘Belt and Road’ project’s communications needs

SINGAPORE (Oct 26): Addvalue Technologies ( Valuation: 0.00, Fundamental: 0.40) was up as much as 31% at 6.8 cents after announcing a memorandum of understanding (MOU) to develop and supply satellite communications equipment to support a Chinese infrastructure project to link China with Europe.

At 12.26pm, Addvalue was trading 29% higher at 6.7 cents.

The MOU covers the China-Pakistan Economic (CPEC) corridor of the so-called called “Belt and Road” project which covers 60 countries and opens up a market of 4.4 billion people. Construction of the CPE corridor is estimated to be completed in 2030 and to cost US$46 million ($64 million).

The CPEC corridor aims to connect the port of Gwadar in Pakistan to Kashgar in Xinjiang via highways, railways, oil and natural gas pipelines and optic fibre networks.
...
http://www.theedgemarkets.com/sg/article...ions-needs

Hi CF,

I deem the above commentary as that of mkt spin doctors.

-vevalue has unveiled a controversial deal to sell to some Chinese that remains in the balance and now this BS...

The better and proven One Belt One Road is as follows:

http://www.valuebuddies.com/thread-1756-...#pid121283

Odd Lots Vested
-vevalue
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#26
Well, I am vested in CMHP, but I didn't see the company has directly benefited from the "One Belt One Road", at least not yet. Addvalue has done a MOU on a direct project, hasn't it?

(not vested in AddValue)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#27
(26-10-2015, 08:05 PM)CityFarmer Wrote: Well, I am vested in CMHP, but I didn't see the company has directly benefited from the "One Belt One Road", at least not yet. Addvalue has done a MOU on a direct project, hasn't it?

(not vested in AddValue)

How much can we trust a company that doesn't deliver...

MOU means nothing...

We can oso sign a MOU with each other and announced to mkt to lift interests in our list co...

Any interest CF?
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#28
(26-10-2015, 08:26 PM)greengiraffe Wrote:
(26-10-2015, 08:05 PM)CityFarmer Wrote: Well, I am vested in CMHP, but I didn't see the company has directly benefited from the "One Belt One Road", at least not yet. Addvalue has done a MOU on a direct project, hasn't it?

(not vested in AddValue)

How much can we trust a company that doesn't deliver...

MOU means nothing...

We can oso sign a MOU with each other and announced to mkt to lift interests in our list co...

Any interest CF?

Well, MOU between us means nothing, but not necessary meaningless between listed companies  Tongue

Let's compare apple to apple, CMHP not even has a MOU with anybody, related to the "one belt, one road" yet, right?
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#29
(26-10-2015, 09:02 PM)CityFarmer Wrote:
(26-10-2015, 08:26 PM)greengiraffe Wrote:
(26-10-2015, 08:05 PM)CityFarmer Wrote: Well, I am vested in CMHP, but I didn't see the company has directly benefited from the "One Belt One Road", at least not yet. Addvalue has done a MOU on a direct project, hasn't it?

(not vested in AddValue)

How much can we trust a company that doesn't deliver...

MOU means nothing...

We can oso sign a MOU with each other and announced to mkt to lift interests in our list co...

Any interest CF?

Well, MOU between us means nothing, but not necessary meaningless between listed companies  Tongue

Let's compare apple to apple, CMHP not even has a MOU with anybody, related to the "one belt, one road" yet, right?

CF,

One Belt One Road is an initiative that CCP came up to develop China's hinterland to the west.

CMP did not enter into a MOU but already executed and completed the contracts to buy 3 roads in the hinterland. 

These roads have little track record to show for based on the current state. However, should One Belt One Road takes off, economic activities will accelerate and CMP will be the natural beneficiary.

As far as I m concern, the initiative will benefit China first before filtering to other Asian countries.

How on earth did Pakistan came into the picture is -vevalue's story. I just sitback and enjoy the sitcom.

As for CMP, I m sitting back to reap the cash benefits that has already been proven since 2004. The expanded platform has so far been proven by YTW and I think Beilun will start to benefit post its recent upgrades.

Jiurui is a 2017 story but for sure CM HJ has already lay the foundation.

I have better faith in a proven story than some speculative spin doctors.

GG
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#30
You are optimistic on the concept of "One Belt, One Road", but not pessimistic on actual execution detail?  Big Grin

I have no doubt, CMHP will eventually benefited indirectly from the initiative later, but not directly now, IMO.

CMHP, isn't the first batch to benefit from the initiative, IMO.

(not vested in Addvalue, but vested in CMHP)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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