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Real-Time news about Ki-BI Tech. (London Stock Exchange): 0 recent articles
|tone: I have a big bag of pound coins gold in colour, I am offering them for sale at just 10 pounds a pop; I will also offer a growth rate of 4.5 percent on each coin brought until 2010,
Please note this offer is only open to KIB share holders|
|eenmakkie: Eli Reifman's Ki-Bi cut & paste
05.6.06 | 14:52 By Efrat Neuman Haaretz.com
The latest financial shenanigans of Eli Reifman, who has cost investors billions of shekels but who isn't short of new ideas. Look at the takeover of Ki-Bi
Last week it seemed that Eli Reifman, the founder and controlling shareholder of the Emblaze (LSE: BLZ) group, seemed to have yanked the tiger's tail a little too hard. After defaulting on repayment of $70 million he'd raised through a personal bond offering (that includes the interest), that he himself had asked to repay early, the trustee ruled that the debt should be repaid immediately.
Unless the money was forthcoming within 30 days, Reifman would have to forfeit all the assets backing his bonds, the trustee growled, and that included Reifman's 25% controlling stake in Emblaze.
With an interesting sense of timing, yesterday - Sunday - Emblaze motioned the Tel Aviv District Court to let it use $70 million of its money. Usually requests like that indicate a desire to pay dividends.
The company does have $250 million cash in hand, but it's short on profit. In fact, it has accrued more than $200 million losses since its establishment.
Because it has no profits, it needs the court's permission to reduce its shareholders' equity. If the company means to use that to pay dividends, Reifman would be in for $18 million. Emblaze commented however that the purpose of the money is to repurchase shares, not to give shareholders a cash dividend.
By the way, among the buyers of Reifman's personal bonds are Ilan Ben Dov, who invested $10 million; Ofer Nimrodi, who through Israel Land Development Corporation (TASE: ILDC) bought $10 million too; and the Meitav investment bank, which gave him $6 million. It turns out that Lapidoth Israel Oil Prospectors Corporation (TASE: LAPD) and Inventech Investments Company (TASE: IVTC) also each bought $1.5 million worth of the "Reifmans". The Histadrut labor federation and Yuvalim bought $13 million worth of his paper, attorney Arnon Gitzelter bought $2.5 million worth, Mario Segal bought $2 million worth, and the list goes on and on. Eitan Eldar and Roy Gill are also there.
Ki-Bi, we barely knew ye
But that was then and meanwhile, last week Reifman pulled off a creative financial move, completing the takeover of a company called Ki-Bi Mobile Technologies.
It was a year ago that Ki-Bi, an Israeli company, floated on London's AIM market, and by now its whole story has changed.
Under Reifman's direction, the company has undergone a complete makeover. It has a new owner, new employees, new operations and even a new name.
Originally Ki-Bi Mobile Technologies, which had been founded all of four years ago, was working on the development of a electronic content cards for cellphones. The Emblaze group is by and large devoted to various aspects of cellular technology and communications.
But Ki-Bi didn't really take off, its results were pathetic and the London crowd sent its stock dropping by tens of percent.
Emblaze noticed and took advantage of the drop. After the offering it had owned 10% of Ki-Bi: as the share price plunged, it bought and bought. By February 2006 it owned 30%.
At this stage, Ki-Bi's CEO, Ehud Levy, and two of its external directors, quit, and it became evident that Reifman was cooking up a cut and paste - buy the company and shovel one of Emblaze's operations into it.
Indeed, in recent months Ki-Bi basically stopped functioning. The mood in its corridors was doom and it was only a question of time until it ceased to exist, at least as was.
At the end of last week, Emblaze announced that the deed was done: Ki-Bi had bought the operations of Emblaze-VCON, one of the Emblaze units, and had fired almost all the Ki-Bi staff.
Isn't math fun
Now let's look at some surprising figures. In August 2005, Emblaze bought VCON for $1.6 million. Certain VCON shareholders, the Pitango and Index venture capital funds, received 30% of the company, which had been merged with an Emblaze unit.
Now, according to Ki-Bi's announcement from last week, Ki-Bi has bought the merged VCON-Emblaze unit for no less than $20 million. How wondrous! In less than a year, Emblaze-VCON?s value climbed tenfold.
"Since the acquisition, Emblaze has invested $5 million in VCON," the company said. "An external company evaluated Emblaz-VCON at about $20 million but ultimately it was sold according to a value of $15 million."
The purchase had been effected using shares. Now Ki-Bi (or in its new name, Zone-IP) owns 100% of Emblaze-VCON, in exchange for which the Emblaze-VCON shareholders received 60% of Ki-Bi.
Yes: the move majorly diluted the Ki-Bi shareholders, who now own 40% instead of 100%, and brought Emblaze to a probably not-coincidental 51% holding - which is exactly what it needs to consolidate financial statements and cash.
One may assume that Emblaze will post capital gains from the sale, too.
Emblaze commented that it was an insider transaction and that capital gains are minor, if there are any at all.
Grumbles in the background
It turns out however that some of the Ki-Bi shareholders, including private Israeli ones, are not amused. Ki-Bi had been trading in London at a valuation of $12 million and they have criticism about the deal.
They seem unconvinced that Zone-IP is a better company with operations worth $20 million (or $15 million). How do we know they are unpersuaded? The Zone-IP share price sank 20% in the space of two days, that's how.
Since Ki-Bi went public in April 2005, it has lost 70% of its value.
Another interesting tidbit is that the British investment bank of Collins Stewart, which had underwritten the Ki-Bi initial public offering, didn't take part in this latest move. Instead Reifman hired a little underwriter called John East & Partners.
A source near the reverse takeover, in which wee Ki-Bi bought Emblaze-VCON, said that Collins Stewart thought Emblaze-VCON was priced too high, and didn't want any part of the deal. Another source said that Collins Stewart priced its own services too high.
The transaction remains subject to the approval of shareholders at an assembly scheduled for July 12.|
|badday: Armshare.com (A very good free site for research on AIM stocks updated its Ki-bi rating on February 20th:
Ki-Bi Mobile Technologies Ltd.
Report updated: 20th February 2006
Ki-Bi Mobile Technologies Limited came to the AIM market in May 2005, having raised £10 million before expenses at 98p per share. Ki-Bi provides innovative technological solutions for physical distribution and marketing of content and applications for mobile handsets. The company's business model is based upon the sale of electronic content cards and sharing of the revenues from the content distributed through them. Ki-Bi has been a portfolio company of Siemens Acceleration since September 2003.
Content, such as ringtones, music, video and games for mobile handsets, is currently distributed mainly by over-the-air downloads into handsets, but there are technological, logistic and marketing barriers to traditional physical distribution of such content via retail outlets. Ki-Bi provides a solution for the physical distribution of mobile content based on a combination of proprietary consumer electronics devices and central management server systems. Ki-Bi's Cards enable flexibility for customisation and production in mass volumes, elements which the Directors consider are essential in brand differentiation and content promotion. During the past two years, Ki-Bi has established relationships with global leaders in the mobile market such as Ericsson, Orange, O2 and others.
Overall there were at the time of the May 2005 listing more than 1.5 billion mobile phone users worldwide, predicted to increase to more than 2 billion in 2007. The mobile content market for personalisation, entertainment and information is expected to grow from approximately $26 billion in 2005 to $91.8 billion in 2009.
A heavy fall in the share price elicited a July statement to the effect that the directors knew of no reason for this.
The interim results to June 2005 showed sales of $357,000 (2004: $137,000) and pre-tax loss of $2 million (2004: $(594,000)).
In October, agreement was reached with The Source (Canada's largest electronics distributor with 900 stores) to supply 100,000 Rogers Wireless (Canada's largest mobile operator) branded cards offering mobile content such as ringtones. Rogers Wireless handsets are the only make of handset supplied by The Source. Later in the month, mobile operator, O2, agreed to bundle Ki-Bi cards (providing access to mobile content) across its four top selling handsets. Ki-Bi will initially supply 50,000 cards - the customer holds these up to the phone and then presses the button relating to the content required, which is then downloaded to the phone from the central server. Revenues from premium rate content are shared between the various parties involved.
A November update reported that progressing major transactions is taking longer than anticipated, with the result that sales for 2005 will be significantly below the company's perception of market expectations.
In December, Virgin Mobile agreed to trial Ki-Bi cards with purchasers of certain handsets during the post-Christmas promotion period. Later in the month, an alliance was established with Munich-based Brand Your World to resell Ki-Bi cards and content distribution platform within Austria, Germany and Switzerland. Brand Your World is a communication and brand marketing consultancy focusing on three key areas: cultural marketing, music marketing and innovation.
Later in December, Carphone Warehouse (CW) ordered 100,000 specially created CW branded cards for a Valentine's Day promotion. There are two types, one card enables a selection of SMS chat up lines to be sent anonymously; the other card can be personalised and used as a gift. In January 2006, the Carphone Warehouse collaboration was extended to include Ki-Bi cards containing cutting edge content from Universal Music Mobile.
On 30th January, the board noted but was unable to comment on the tender offer launched on 17th January by Emblaze Ltd (which already has a 24.95% shareholding in Ki-Bi) to acquire 5% of Ki-Bi's issued share capital at a price of 41p per share - this is because Emblaze has not yet presented any plans to the board since the appointment of new directors at the EGM on 4th January 2006.
On 20th February, the company announced a reorganisation programme to accelerate the route to profitability - this has already resulted in the stepping down of the CEO (to be replaced) and the proposed departure of the FD together with 2 of the 9 NEDs.
A fallen star since its IPO in May 2005, but well financed - the share price at 20th February was 39.5p compared with the IPO price of 98p. Re the February 2006 announcement, changing CEOs is a risky process - track at this stage.|
|roodboy: the problem now is that BLZ are the the largest shareholder yet do not have an interest in seeing the share price rise in the short term - its like a parallel universe|
|britishbear: Excellent posts.
I suppose the good news is that BLZ seem very keen to buying a large stake in KIB way above the 30% limit (which they are not bound by).
My fear was that they would stick to 30% but this means that we will get continued large buying that will provide support to the share price at current levels and should move it up from here.
This seems as excellent small downside, massive upside punt. I may even have to buy more once my AFN shares double on todays bid rumours (probably invented by Maestro) :-))))|
|britishbear: So under Israel rule does the 30% rule hold or not? Maybe they need 45%?
All very confusing but not selling - they have to put forward a tender by law so it is not a formality that they will be get them all imo (unless the share price falls a lot further of course).|
|britishbear: I read it as the technologies being complementary and that KIB would make a perfect fit within the BLZ empire to bolt on to Smart or viceversa.
Either way, KIB share price should rise. I am sure it would take 80p minimum to take over KIB.|
|britishbear: Interesting announcement from BLZ (Emblaze) - they have just takenover a small mobile content company from Israel when Eli and his chums were also on the board.
Anyone know of another small mobile content tech with Eli and BLZ friends on the board?
I wonder what the takeout price would be and how long he will wait before snaffling the rest of KIB.....
Has to worth a couple of pence on the share price.|
|taurusthebear: It was nearer 21 quid a share for the placing. GIM's share price only went over 30 quid for 1 or 2 days at most. Good times, but utter madness! :0)|
|britishbear: Eli bought a firm called GEO interactive to market in Israel just before the tech bubble. Share price went from 10p up to £35 or something crazy. He then raised an additional £200m or so from institutions at £30 a share.
The company simple did a little video streaming with no customers and no profit.
He famously said "£50 by Christmas just before it fell of a cliff" even though many investors bought at over £30.
Tech bubble collasped, BLZ share price fell to 60p but they still had £200m in the bank. Some of this cash could be used to buy KIB as he still has a lot of it left (almost equal to BLZ's current sp).
Eli has also made some dodgy share deals borrowing large amounts of money to buy BLZ shares hoping that a rise in BLZ's share price could then be used to pay off the loan.
He is flamboyant and has fingers in many pies, has access to a lot of cash yet non of his companies seem capable of turning a profit.
Even so, he is to be admired and is well connected.
I think KIB will benefit from this association and the Virgin connection could be key.
We just need some evidence that someone, somewhere is buying these darn cards. Anyone seen them for sale anywhere?|
Ki-BI Tech. share price data is direct from the London Stock Exchange