Teleunit Share Discussion Threads

[buggy] 21/9/2009 14:52

Anybody still hold shares in these even though delisted.

I see that they have sold out of NEOMOBILE, which is the cash cow. Any information on how much and what exactly they plan to do with the money?
Distribute to share holders or cut and run and wait for any residual share holder to take them through the Italian courts?

[charmer1_23] 20/8/2008 13:37

RNS Number : 6590B
Teleunit S.p.A
20 August 2008

Teleunit SpA

('Teleunit' or 'the Company')

Neomobile Transaction




Further to the results announcement made by the Company on 20 June 2008, the Directors wish to update the market in respect of the proposed sale of a minority stake in its wholly owned subsidiary Neomobile S.p.A..




As set out in the results announcement, the sale is subject to the raising of debt finance of EUR13 million, and receipt by the parties of the required authorisations from Italy's Antitrust Authority.




Whilst the Directors are confident of receiving the required authorsiation from Italy's Antitrust Authority, the Company is still in discussions with one of the financing banks, which has requested more time to analyse the credit structure and conditions of the loan.




Neomobile is continuing to trade successfully with results to the end of June in excess of budget and, the prospective purchaser has reconfirmed its interest in proceeding with the transaction.

Whilst the Board expects a positive outcome, no guarantees on the successful conclusion of the transaction can be provided at this time and the Board will update the market in the coming weeks as more information becomes available.




Enquiries:




Gianfranco Cimica, Chairman/CE

Teleunit SpA
O Tel: [phone]











Oliver Rigby

Daniel Stewart & Co Plc
Tel: + 44 (0) 20 7776 6550















This information is provided by RNS
The company news service from the London Stock Exchange

END


MSCZKLFFVVBLBBD

[8trader] 22/6/2008 19:16

Thanks for that great post Xena.

Lots of possibles then, maybe they could get rid of the less performing
sides of the business and concentrate on the good parts.

If Neomobile was floated it would raise a amount several times over the
current market cap.

You mentione the seller, i agree and that is why that 500k imo was definately
a buy, they would not take a 500k sale unless they had a buyer for it, so now
is the time to take advantage of the stock offered because if everything goes
to plan and the mm have little stock then the price will soar when punters try
to chase it up when hopefully good news hits.

[xenawarriorprincess] 22/6/2008 13:39

I've been a holder of Teleunit for a while now. About 3 years ago I held quite a few of these but managed to get out before the precipitous decline, but still took a hefty loss.

I've been buying over the last year or so as they appeared very undervalued - having said that it has always seemed that Teleunit is a serial disappointer - lots of potential, but never quite getting to payola time.

I bought more on Friday - the 30K was mine - and may well buy more in the coming weeks.

Neomobile is interesting - probably the extra cash they will get will be spent on a Brazilian/South America launch - there are references on the internet to this but the company has said nothing



South America is one of the fastest growing mobile content markets. A presence in more than one country would make sense given the lauguage similarities.

I guess the share structure, and its Italian connections probably holds it back - about 70% of the shares are owned by the controlling family, and the free float is minimal. There has also been a serial seller of the last year or so that has prevented the price going anywhere other then down.

I suspect Neomobile will eventually be floated as a separate company so as to release some value, but if the present deal goes through then this would give the impetus for a re rating.

Geophonia also seems interesting but nothing about that in the results.

[8trader] 22/6/2008 12:56

As you say Buggy this part of the business alone easily justfies
a much bigger valuation than the current market cap, i wonder if
anybody else notices it over the coming weeks and is prepared to
take the risk that the deal goes through.

Mobile Content Services:
Divisional Highlights:
* Revenues up 76% to EUR24.0 million (2006: EUR13.6 million)
* Gross profit up 87% to EUR19.6 million; 82% margin (2006 EUR10.4 million; 77%
margin)
* 2.5 million unique users interacted with Neomobile in 2007, up 150% on 2006 (2006:
1.0 million).

I am pleased to report that in 2007 Neomobile again exhibited exceptional growth. The 76%
rise in revenues can be attributed to the
successful implementation of its strategy of internationalisation and due to strong demand for
content in all countries it currently trades
in. More than 20% of Neomobile's revenues were in 2007 derived from Turkey and Spain,
vindicating the strategy of internationalisation first
implemented in 2006, when Neomobile took its first step overseas.

[buggy] 20/6/2008 09:35

8Trader,

You are not too bullish, even the other parts of the business apart from Neomobile contribute to profit.

I am just being over cautious, and assuming that even if there is a total collapse of the rest of the business then the Neomobile deal will provide a lower floor value on the worth of TLU. {Just me building in a very large saftey net}.

I do believe that does that are willing to take the chance that this deal will be completed and buy in now before the rerating will be handsomely rewarded ... but as they say "....you pay your money and you take your choice".

[8trader] 20/6/2008 09:18

Maybe i'm too bullish but it looks like most parts of the business can
make contributions to profits buggy.
I'm not too fussed short term, i like what i see and if everything goes
to plan then we should get rewarded for waiting 4-6 weeks.

Note that 500k trade, that cannot be a sale, there's been a overhang
through months of stale selling and they are only bidding 15k online
so i think that is a director buy.

All imho and dyor.

[buggy] 20/6/2008 08:29

8Trader,

I do beleive thare is a potential for a multi banger but I am now basing my calculations on Neomobile and discounting al else.
I was expecting some lowish figures due to the issue with Italian Telecom but have to admit that I was not aware of the regulations on Premium access number in Italy.

Still the sale of a minority share of Neomobile will cristalise value and put a valuation on Neomobile. Hence all really depends on this transaction if this transaction ends up valuing Neobile at say 8p per share then the rest is free.

Well about 6 weeks to go and if the deals goes through the market will react accordingly.

[8trader] 20/6/2008 08:12

The way i see it Buggy the results had to be a "mixed bag" otherwise the
shareprice would be trading over 10p in the last 12 months.

I see great potential here for a multi-bagger, maybe not today, maybe not
next week but in the coming months if all deals are signed.

Just a case of waiting upto 6 weeks for the deal to go through.

[buggy] 20/6/2008 07:59

Just had a quick glance at the results.

A right mixed bag. There are some positives but also a lot of uncertainities and decline in their previous prime earner.

I will hold off judgement till the deal that is supposed to be completed by 28th July (sale of minority inteterest in Neomobile). If they pulls that off then it will put a flor on the value of te company and there will be some serious re-rating.
If this deal is completed I wil base my value of TLU on the value of Neomobile and the rest is in for free. The rest are not loss making so whatever the3y contribute going forward I will take as a bonus.

DECLINE IN KEY BUSINESS ARE:
Currently the major earner for TLU was the Prenium Access business. The decline of this area due to new proposed regulations in Italy has a significant impact on the groupd turn over and profits. { Luckily the growth of Neomobile will mean that Neomobile is likely to overtake Prenuim access as the key contributor).

Working capital intensive business going forward:
Previously TLU used to collect outstanding debts within 30 days of billing. The new arangement is now that 80% of dept should be paid within 90 days and the remainder within 120 days of billing. Since TLU still pays its agents/partners twice a month, they are in effect paying with their own money something that they will not fully collect back for 120 days.


All in all my initial gut feeling is that Neomobile alone will carry this company and all hinges on this minority sale being concluded. [A venture bank would not be investing if they have not done a proper due deligence and decided that it is a very attractive business]. That deal will also help to put a figure on the value of Neomobile thus the lower value of TLU. The money that the company will receive will help to ensure adequate working capital in view of the now capital intensive nature of the business.

Again I have just had a quick glance. Will analyse the results at leasure later on today.

[8trader] 20/6/2008 07:48

Accordingly I am pleased to report that Teleunit's
net cash position, which will prove vital to the future growth of the Group's most exciting
and fast-growing initiatives, is expected to
reach record levels in 2008."

[8trader] 20/6/2008 07:44

Top tip buggy.

Looks like the shareprice will open unchanged, the recovery potential here
is amazing considering the turnover, operating profits, margin increases
and of course huge cash injection to the balance sheet and all for a company
worth just 6-7 mil.

"The prospects for Neomobile are excellent and we are delighted that a major VCC has confirmed our view by making such an important financial commitment to the business. The value of TLU's residual equity stake in Neomobile, should the Transaction be closed successfully, will be in excess of €34 million (c. £26.8 million) which is substantially above the Company's current AIM market capitalisation; this, plus the €23 million in new cash, net of expenses, expected for TLU's balance sheet, we hope will create the conditions for a significant re-rating of the Company's shares. Moreover, the Transaction vindicates Management's efforts in creating new value for shareholders through restructuring the Company and positioning it for growth through selective support for exciting new initiatives, such as Neomobile"

[8trader] 19/6/2008 13:50

Any reason why they did not save this news for results buggy ?

Just been familiarising myself again with the company, debt of around
18 mil on last results.

Then a settlement worth 7 mil euros with 2mil+ more possibly later.

Teleunit settles dispute with Telecom Italia over overdue receivables (Teleunit Spa)

"The group said its cash position has significantly improved after the
settlement"

Then yesterdays news.




Concurrently, the Board is pleased to announce that it has signed an agreement with a major Italian bank's Venture Capital subsidiary for the sale of a minority stake in its Mobile Content Services business, Neomobile, for a total cash consideration to TLU of €23 million. TLU will receive €10 million from the Venture Capital company in exchange for a 20% stake, €1 million from Neomobile's Managers in exchange for a 12% stake and €12 million in new debt, thus providing an important contribution to TLU's working capital. The Transaction values Teleunit's residual holding of 68% of Neomobile at €34 million which represents a substantial premium to the current AIM market capitalization, and will result in a material injection of cash to the Group's balance sheet. The closing of the Transaction is subject to the raising of €13 million debt financing (€1,0 million of which will be used to fund expenses related to the Transaction) and Antitrust approval. Although the Board believes that conditions for completion will be met by end July, no guarantees on the successful closing of the Transaction can be provided at this time.

One question from that.."12 mil in new debt"...what does that mean !

In theory i think all debt could be elimanted now with a stake possibly
worth 30 mil or as you say around 5 times the current market cap.

I can see why the excitement, problem is the desperate current market conditions we are suffering here, not many buyers about.

Maybe tomorrow results will clear everything up.

[love it] 19/6/2008 10:21

">>>hence not a bad thing , in hind sight, that they are writing off Pro-advertising and Starline investments."


So could you give a outlook on what you expect in the results. Are they going to look bad with all the write offs with a good forward looking statement?

L2 2 bid 2 offer at the moment with all the buying looking for 1 mm to move off the offer.

[buggy] 19/6/2008 08:33

8Trader,

Hopefully the deal for minority sale of Neomobile puts a floor on the value of TLU. Even if you get the rest for nothing then it still puts this at a value of about 5X current price.
Past issues and lack of visibility is one of the issues for this company, company still under the radar.... will never really have any institutional holdings because most of the share are not in free float and controlled by one family and domiciled in Italy.

Results out tomorrow:
I am looking to see how the core business, (telecommunication and Mobile content) is performing as I believe these are the areas that they should focus on.
>>>hence not a bad thing , in hind sight, that they are writing off Pro-advertising and Starline investments.

[8trader] 19/6/2008 08:20

Buggy.

Thanks for pointing out this on the Uvel thread, i'd forgot about them.

I've definately had some this morning, infact i've bought twice, be interested
to see what happens when the herd catches up with this one.

[buggy] 18/6/2008 22:17

Based on today's announcement:

"...This deal puts the value of Teleunit's share of Neomobile, (68%), at 34Mill Euros..."

That equates to £27 Mill >>> and the market cap for TLU is .about £5 Mil.>>> less than a fifth of the value of Neomobile and the rest of the company , (telecommunication part), is thrown in for nothing !!!.


Seriously undervalued I think, but when will the market catch up.

[glencr] 02/1/2008 12:42

buggy,

It does look like there are many shares tied up but unusual to see 500k up for grabs (possibly more than this who knows?) As said in one of my previuos posts i have been looking for a while and think the company is undervalued, good luck.

[buggy] 02/1/2008 12:20

Hi Glencr,

I know that you can buy 500K on line, but check the free float.

Shares on issue =186,744,249

Tightly held shares:
Shares held in treasury =800,000
Shares held by Mr G Cimica = 1,837,000
Shares held by Cimica's wife = 3,406,866
Shares held by Exec Dir (Micheal Phair) =7,275,000
Shares held by TLU International (company owned by Cimica and immediate family)= 123,251,268.

Taking account of the above tightly held shares means that there is only 50,174,115 shares on free float.

Now other major shareholders as of March 2007 are ( which should again reduce the number of shares available):

SIS Segaintersettle AG Zurich= 34,535,841
The Throgmorton Trust PLC = 8,525,000
Fiduciary Trust = 6,765,000
Framlington UK Smaller Companies Fund =3,800,000

The sum of the major share holders interest listed above comes to 53,626,741 shares ???

This is greater than the amount of shares in free float so it is clearly one of these companies that is exiting, (hence you could for now buy up to 500K online).

Edit:
This happened before just before I bought in, about 1 month or two ago. You could buy 500K online and I initially bought in at between 2.5 up to 3p. After this the shares dried up and the price was marked up to 3p for a sell. Before X-mas, I presume a line of stock came back into the market and the price was again dropped.

[glencr] 02/1/2008 11:35

8T,

I have watched this stock for a month or two now and there has always been stock avaiable (at lower levels than this - usualy 3.25p mark)...thus my post is politely disagreeing with buggy who is stating that there is a very little free float...any stock which is rarely traded or has very little liquidity such as this would not have 500k available to buy if that was the case. Has anybody got any idea of the size of the overhang?

Regarding qti....it is a shame the mm's have killed the trading volume...but only they can get things started again by yempting some sellers with a higher bid price.

[8trader] 02/1/2008 11:24

What you will quickly learn Glen that market makers will easily move
up in stocks at times where there's overhangs to try and encourage buying
but play stubborm buggars when they are short like in Qti and Nwt where
they need to get stock.

[glencr] 02/1/2008 11:22

You can buy 500,000 online @3.62p.....but only sell 25k @3.5p

Does not sound like they have a shortage to me if they have 500k to offload.

Looks like a decent company though and i have them on my watch list.

Good luck

[8trader] 05/12/2007 15:36

500k offered online at 3.5p though !

50k bid.