Avanti Communications Share Discussion Threads

[dice1950] 16/9/2016 12:24

Satellite group Avanti Communications (AVN) says it is continuing discussions with potential interested parties which may lead to an acquisition of the business or a new strategic stakeholder.
By Graeme Davies,
16 September 2016

[dice1950] 16/9/2016 11:14

By Chris Forrester
September 16, 2016

London-based Avanti Communications says it is still in discussion with “a number” of potential acquirers or investors around a “strategic” transaction and that discussions are on-going with interested parties.

“Upon the completion of due diligence by interested parties, the Board intends to request best and final indicative offers for a potential acquisition or any strategic investment in the Company. There is, however, no certainty that a satisfactory offer or other strategic transaction will be forthcoming,” said an Avanti statement, Sept 16.

[dice1950] 16/9/2016 10:28

SharesMagazine Wholesale data telecoms play Avanti Communications (AVN:AIM) gains 13.5% to 35.74p as it announces progress with a strategic review to address its balance sheet issues and unveils a new contract with the European Space Agency to provide satellite broadband in Sub-Saharan Africa.

[dice1950] 16/9/2016 09:37

Avanti Communications Group PLC (LON:AVN) (LSE:AVN.L) has released an update on its strategic review. In order to address the short term liquidity requirements of the company Avanti has begun the process of issuing additional senior secured notes due in 2019. This is in order to pay the $32.25 million October 2016 coupon. Bondholders owing around 60% of senior secured notes have provided support.

Avanti has also commenced work on a long term funding solution. Further updates will be provided on this in future. As of 9 September Avanti had cash of $56 million on its balance sheet.

A contract win was also announced by Avanti today. It has been awarded a new contract with the European Space Agency through its ARTES Partner programme. This will provide affordable satellite broadband connectivity to 1400 community sites across Sub-Saharan Africa between now and 2019. It will utilise Avanti’s new ECO Wi-Fi hotspot initiative, which has been launched today.

2016 has been a difficult year for Avanti and it initiated a strategic review in July. Its revenue is forecast to grow by 35-40% annually over the next 2-3 years. Even so, its shares have fallen by 80% since the start of the year.

This is behind the performance of tech/telecom peers such as Vodafone Group plc (LON:VOD), BT Group plc (LON:BT.A), Micro Focus International plc (LON:MCRO) and Talktalk Telecom Group PLC (LON:TALK) in the same time period. Vodafone is flat year to date, BT has declined by 20%, Talktalk is down by 11% and Micro Focus has risen by 35% in 2016.

In my view, Avanti has long term growth potential.

[dice1950] 16/9/2016 09:01

Analysts have long marked Avanti as a possible takeover target for larger satellite group Inmarsat (LON:ISAT).

[dice1950] 16/9/2016 08:32

Avanti Communications still in the market for a buyer
Financial Times

Avanti Communications, the London-listed satellite group, said it is still in discussions with potential buyers over an acquisition after its larger rival Inmarsat, ruled out a bid for the company last month.


Avanti, which is listed on the London Stock Exchange’s Aim market, has been conducting a “strategic review” since the summer, fuelling speculation that it will be acquired by private equity investors or a larger rival.

In an update on progress with the review, Avanti said:

Avanti has engaged in discussions with a number of potential acquirors or investors around a strategic transaction and discussions are on-going with interested parties.

Upon the completion of due diligence by interested parties, the Board intends to request best and final indicative offers for a potential acquisition or any strategic investment in the Company. There is, however, no certainty that a satisfactory offer or other strategic transaction will be forthcoming.

Inmarsat said in August that it had no interest in Avanti having been contacted by its advisers but it had “withdrawn from Avanti’s announced process and it is not considering an offer for the shares.”

[dice1950] 16/9/2016 07:47

AVN contracts and bidders circling 350p

[gerryjames] 16/9/2016 07:20

On a quick scan the 60% bondholder has seen the future. New revenue projections and Capex look great. Give this a few years. It'll be very profitable if not taken-over. IMO.

"As of 9 September 2016, the Company had cash and cash equivalents of approximately $56 million.

The Board believes that the support of the Investor Group in the Consent Solicitation process represents a significant step towards addressing the Company's immediate financing requirements. The Company will continue to finalise a longer term refinancing solution with the intention that it is structured to maximise shareholder value and to provide a stable, long term platform for the Company. The Company will also continue to explore an M&A transaction and will update shareholders in due course."

[divinausa1] 16/9/2016 07:13

looks like all good news.... these will be back over a pound before xmas

[cocker] 15/9/2016 20:38

Unfortunately roofer to many aim listed companies are run by directors for directors.

[cocker] 15/9/2016 19:31

I would Roofer. Mr cap 45 mill & debt of gigantic proportions. Exactly who would take that on. It's like marrying a bride who is carrying Satan's child

[roofer2] 15/9/2016 18:40

With a share cap of £45m it's not over yet but I wouldn't back against it ! Atb

R2

[nugacity] 15/9/2016 16:02

Sanlam seem to be dumping on a daily basis, - South Africans moving their money into Botswana?

[ipsofacto1] 14/9/2016 16:58

Roofer2 what have I missed? What are these negotiations you refer to and rumours of good news? Has something happened?

[roofer2] 14/9/2016 13:55

Rumours of good news due is straight ramping, the institutional selling says different as the share price falls consistently, that's as I see it gla

R2

[dice1950] 14/9/2016 13:12

fantastic news coming enjoy guys

[roofer2] 14/9/2016 13:09

If AVN are in any form of negotiations they should say so, PIs are owners of this company, RNS undate should be issued asap PIs should never be taken for fools IMO

R2

[nugacity] 14/9/2016 10:49

Huge spread at the moment. 34p versus 35.75p

I am a bit cheesed off with AVN because it has collapsed so much that my ISA account total has dropped to the zone where the broker charges fees. £15k to £5.3k and fees apply below £5.1k (but only on one day of the year, 1st May or 30th April) - an account I don't monitor much. Has two long term stocks in it but the main one is AVN.

[roofer2] 14/9/2016 10:37

RNS, institutional investors are now increasing there daily sell rate, they always get to know bad news before PIs do, can't be good news if their selling rate has increased IMO

R2

[roofer2] 13/9/2016 20:15

Weatherman, how could it be a minority stake in lending £50m when the share value is only £50m ? But let's not let the truth get in the way of a good old ramp hey dice!!

R2