Avanti Communications Share Discussion Threads

[tyranosaurus] 19/7/2016 11:21

loglorry1

Look at GKP today
Could have doubled your money in a matter of days.

[gorvachof] 16/7/2016 08:34

CEO David Williams continues to do well despite Avanti’s losses. In 2015, he earned (salary, bonus and ‘other benefits’ a total of $1.15 million (up from $1.04m in 2014). Overall the directors (executive and non-exec) received $4.04 million in compensation. All of the executive directors received bonus payments, in total amounting to $269,338.

By way of comparison, Eutelsat’s CEO Rodolphe Belmer (revenues €1.47 billion, EBITDA profit €1.13bn) is receiving annual remuneration of €650,000 (plus eligibility to an “up to” 100 per cent of salary if key performance indicators are achieved).

hxxp://advanced-television.com/2016/07/11/avanti-administration-next-step/

[dice1950] 14/7/2016 22:01

Avanti Communications (LON:AVN) Total bargepole.
14th July 2016

I see that the company has effectively put itself up for sale. Shareholders need to be mindful that debt ranks ahead of equity. Therefore, there is only likely to be ...

[dice1950] 14/7/2016 22:01

Avanti Communications (LON:AVN) Total bargepole.
14th July 2016

I see that the company has effectively put itself up for sale. Shareholders need to be mindful that debt ranks ahead of equity. Therefore, there is only likely to be ...

[loglorry1] 14/7/2016 20:26

Weatherman you miss the point I think. Unless they can sell helps 3/4 which they can't because the bonds are secured against them they are of no use Un helping them meet their funding shortfall and fund their business.

A buyer won't pay a penny for the equity when they can deal with the bondholders.

[eddiegoldstein] 14/7/2016 19:47

just wait for 0p and pick up the bonds in a fire sale

[weatherman] 14/7/2016 17:49

Avanti has $650m debt. They have paid out for 4 satellites, Hylas 3 and 4 are still on the ground. The cost of those satellites is nearly 2/3rds of the debt ($390m) with a full life ahead of them - i.e. no depreciation yet.
On top of that we have Hylas 1 and 2, plus 2B, and ground stations. Plus geosync orbits may be worth $180m.

So is AVN a bargain at $75m mkt cap if a takeover target ? or is it going to zero as the shorters wish?

[loglorry1] 14/7/2016 14:29

Weatherman take a look at GKP today to see an example of how a debt restructuring might take place. I'm afraid this is almost certain to go the same way.

[weatherman] 14/7/2016 12:26

JK - I think you are reading between the lines on the bond market. I am not in competition with you or anyone, some here feel the need to make this personal - but I have no interest in that. I may make mistakes and do not ramp stocks, just trying to search out what is going on, but then I also have seen substantial growth over my life with investments on the stock market. I know how to balance risks etc and I have seen my portfolio grow the last few weeks even while AVN has declined.

[weatherman] 14/7/2016 08:36

JK - reading between the lines of the stock market - the price has settled at 32p giving AVN a market cap of £50m, suggesting that institutional holders are willing to stump up the money on a 1 for 1 basis. AVN has also had a number of initial takeover proposals, and judging by the way price sensitive information leaks it will likely be in excess of the current market cap. They are having a review to see which is the best option. Institutional holders will do their best to recover as much money as they can, and I suspect that Williams will be forced out whether it is taken over, or a 1 for 1 stock offer, or some large investor taking a minority / majority stake.

All imo dyor.

[dice1950] 13/7/2016 14:23

Avanti Communications (AVN) says it has begun talks with a number of potential investors to bring in new funding.
13th July 2016

[dice1950] 13/7/2016 14:23

Avanti Communications (AVN) says it has begun talks with a number of potential investors to bring in new funding.
13th July 2016

[loglorry1] 12/7/2016 21:27

Jaknife yes I'm well aware what a Senior Secure Bond is. I've no idea how liquid or otherwise the bonds are (do you know?) but I'd agree with you that the bond market is seldom wrong whereas the equity market often is.

If anything I expect that the bonds are over estimating the EV and indeed the equity is almost worthless just as we see in GKP.

Log

[weatherman] 12/7/2016 18:23

Jaknife - you assume that the bond market is perfectly efficient - when in reality the avn bonds have moved with the bond market.

Secondly, look at the value SES paid for the half of the MEO constellation they didn't own.

[sphere25] 12/7/2016 18:05

Takeover period gives everyone a deeper insight into who the muppet institutional fund manglers backing this piece of garbage are.

Take a bow muppet manglers at:

L&G
Caledonia
Hadron
Capital Group

And a special shout out to Prudential/M&G for being long almost 19% of the company. Hilarious!

I'd be withdrawing any funds invested with any of the above, especially Pru/M&G!

Oh the institutions are buying, oh that must mean good news and that I should buy too!

^^^WRAAAHONG!!^^^

[bwakem] 12/7/2016 16:52

I'll have a pint of whatever weatherman is on.

[weatherman] 12/7/2016 16:16

The geosynchronous slots may be worth $180m. Satellites in excess of debt, plus business that may sell for multiple of turnover, as happened in other cases.

[loglorry1] 12/7/2016 12:35

What are the assets worth? I've had a look at the last half year results and they don't seem to be throwing off very much cash at all. Cost of sales is pretty high but even ignoring that the depreciation on the assets (I assume they come crashing down at some point) is almost as much as total revenue e.g. $31m revenue vs $22.8m depreciation and that's not counting other cost of sales of $18.4m and huge finance costs of the HY bond.

I know the idea is to grow revenues but they've failed to do that.

[weatherman] 11/7/2016 23:06

11 July 2016

AVANTI COMMUNICATIONS GROUP PLC

Strategic Review and Commencement of Offer Period under the Takeover Code

On 7 July 2016, the Board of Avanti Communications Group plc, ("Avanti" or the "Company" or the "Group") announced its intention to engage in discussions with a number of potential investors to address its funding requirements.

Following that announcement, and in response to initial interest from potential acquirors, the Board is of the view that it should, in parallel to considering an equity raise, conduct a wider strategic review to explore additional opportunities including a corporate transaction such as a merger with or offer for the Group by a third party or a sale of the Group's businesses. The Board therefore intends to pursue all of these possible alternatives to ensure the best outcome for its shareholders. The commencement of a "formal sale process" in accordance with Note 2 on Rule 2.6 of The City Code on Takeovers and Mergers (the "Code"), provides the most appropriate framework under which such considerations can be made.

Formal Sale Process - Takeover Code Implications

ETC,...

[weatherman] 11/7/2016 23:03

11 July 2016

AVANTI COMMUNICATIONS GROUP PLC

Strategic Review and Commencement of Offer Period under the Takeover Code

On 7 July 2016, the Board of Avanti Communications Group plc, ("Avanti" or the "Company" or the "Group") announced its intention to engage in discussions with a number of potential investors to address its funding requirements.

Following that announcement, and in response to initial interest from potential acquirors, the Board is of the view that it should, in parallel to considering an equity raise, conduct a wider strategic review to explore additional opportunities including a corporate transaction such as a merger with or offer for the Group by a third party or a sale of the Group's businesses. The Board therefore intends to pursue all of these possible alternatives to ensure the best outcome for its shareholders. The commencement of a "formal sale process" in accordance with Note 2 on Rule 2.6 of The City Code on Takeovers and Mergers (the "Code"), provides the most appropriate framework under which such considerations can be made.

Formal Sale Process - Takeover Code Implications

ETC...