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NeraTel shareholders advised to reject Northstar off er
Northstar Group's off er of 49 cents per share should be rejected by NeraTel shareholders, the deal's independent fi nancial adviser (IFA) said yesterday.
NeraTel's independent directors agreed with the IFA's view in yesterday's circular, and recommended that shareholders reject the off er as well.
What is the buy back offer price? Sometime the offer price includes the deduction of the coming dividend like recent delist of Sakari. You need to do the Math.
Good Luck!
Thanks.
That means the risk is low buying at 0.49. The risk of falling < 0.49 is low if the acquisition does not get thro' as there is a support from the potential dividend declaration maybe a week or two after the results of acquisition.
One more thing to consider is it may delist and re-list in another country or here again just like courts after a few years. If so, as a private shareholder will then get a very good profit but you are at the mercy of the major shareholder which you never know what is their final plan.
Good luck!
If you rejected the offer the 1st time and it did not get more than 90% then it will remain listed, nothing changed.
However, if it is able to get > 90%, then it will extend the same offer to the remaining < 10% shareholders for the final time before it delist. If you choice not to accept the final one then you will end up as a shareholder in a private company, meaning that you no longer able to sell it in the open market after it delisted. Maybe one day, the major shareholder may offer a very good price to buy over your shares but it may be a very long wait.
Anyway, the delist process will take some time so u will have time to think about it.
Received the mandatory unconditional cash offer letter from North Star Group. Anyone can tell me if I do not take up the offer , and North Star able to garner > 90% , would North Star ignore the remaining minority shareholders? What would happen to the minority shareholders who do not accept the offer ?
From the document , it seems like North Star would exercise the right to compulsory acquire all the shares of shareholders who have not accepted the offer at a price equal to the Offer Price.
If this is the case, who bought it at the price higher than 0.49 , need not take up the offer at a loss. In addition, the fair value is 0.64 couple with high dividend yield of this stock. From longer term perspective, it may not be advisable to take up the offer , and yet the dividend declaration is just around the corner , which I believe will be declared soon after the results of the acquisition. (provided North Star does not garner > 90% and unable to get it through). A typical 4 cents or even 5 cents is expected due to their sterling performance in 3rd Q , primarily , income from overseas businesses. Just my opinion .....
* Please trade with your own risk and do your own analysis ......
LATEST RESEARCH REPORT BY OSK/DMG on 17/10/12.
TARGET IS .64 CENTS.
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Re-ini tiating Coverage |
Private Circulation Only |
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TECHNOLOGY |
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Edison Chen +65 6232 3892 edison.chen@sg.oskgroup.com |
NERA TELECOMMUNICATIONS |
BUY |
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Price |
S$0.515 |
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Terence Wong, CFA +65 6232 3896 terence.wong@sg.oskgroup.com |
Previous |
S$0.47 |
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Target |
S$0.64 |
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Another dividend? not likely. Just had one in July.
Today closed at 0.535, not sure what is cooking. Anyway, happy that it keeps going up....
Earnings results this Thursday probably. Going up and up and looking forwarding for dividend of .02cents plus..
Cheers.
Hi fOLKS,
ANYone collecting this one ? near ten persent returns.
Nera Telecommunications Ltd announced that the Company has received Purchase Orders from a global telecom operator and internet service providers for the supply and maintenance of Network Equipment. The aggregate value of the Purchase Orders is approximately S$8.1 million.
/sgx
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