Cng Travel Share Discussion Threads

[the drewster] 22/5/2007 13:54

Putting a positive gloss on it, it crystalises some losses, and is going to raise twice as much as it would have done yesterday.

[the drewster] 22/5/2007 13:53

So they will, albeit in a year or so, recoup all of their personal losses, and have in the interim drawn very healthy salaries, while we have, well, paid for it all I guess.

[katylied] 22/5/2007 13:47

Can't happen without the support of Seamus Ross (Snr.)
but the Irish Examiner apparantly reports today that..

CNG also said that non-executive directors Seamus Ross Jnr and Michael Smurift Jnr were backing the management buy-out team of Mr King and Barry Liben, the head of CNG's US business Tzell...

So it looks like a done deal...

[the drewster] 22/5/2007 13:16

I agree (as I posted when first found out). It seems thos in the seats of power will now be in a position to recover their losses, but we are not going to get the chance to recover ours.

They clearly see profitable business going forwards, but we're not allowed to share in those future successes.

Outrageous, but unless we have a majority (which we do not) then there is nothing we will be able to do.

[tifosigb] 22/5/2007 11:15

This is absolute robbery - I only hope that another company makes an offer.

[katylied] 22/5/2007 10:51

No surprise there then...

[guru11] 22/5/2007 10:49

If the capitalisation is £7.4m (assuming on the quote screen it is in pounds) and the profit is $2,224 (again assuming that is in dollars) then the pe ratio is £7.4 / 1.13 = 6.5. Surely the MBO is cheap.

If one buys 100,000 at 13p = £13,000 plus £10 buying costs and £6.50 stamp duty = £13,016.50 and there is a MBO at 14.5p (£14,500.00) is that not £1,500 straight profit. ? Rather the offer price now is 14p and online one cannot buy hardly any stock.

So shareholders are being bought out on the cheap.

[nilip] 22/5/2007 10:42

CNG Travel agrees 14.5p/shr cash offer from managers


LONDON (Thomson Financial) - CNG Travel Group PLC said it recommends the
14.5 pence per share cash offer by Corporate Travel Holdings Inc which
represents members of the company's management, valuing the company at 9.15 mln
stg.
The offer represents a premium of about 81 pct over its closing price on May
18. Yesterday, CNG announced that it had received an approach from a consortium
led by Tzell Travel Group's chief executive PJ King and president Barry Liben to
buy CNG
Meanwhile, Corporate Travel said it will pursue its US expansion strategy as
a private entity.
Earlier, CNG Travel posted a much narrowed full-year pretax loss, benefiting
from disposals, and said it is now on firmer financial footing than the previous
year.
The company said its pretax loss for the year ended Dec 31 narrowed to 2.22
mln usd from a loss of 23.34 mln usd, while revenues declined to 46.39 mln usd
from 54.80 mln usd. Revenue from continuing operations rose to 46.4 mln usd from
42.5 mln.
It added it has swung to a full year operating profit of 4.19 mln usd from a
loss of 8.43 mln usd. Its sole trading entity, Tzell Travel LLC, posted EBITDA
of 9.1 mln usd compared to 8.8 mln usd the year earlier.

[e-mail]
ukn/faj/lam

COPYRIGHT

Copyright AFX News Limited 2007. All rights reserved.
The copying, republication or redistribution of AFX News Content, including by
framing or similar means, is expressly prohibited without the prior written
consent of AFX News.

[katylied] 22/5/2007 10:32

Yes, but the problem with that is that CTV are Tzell.
There isn't any other significant business. So how
can the losses be UK, but the profits US? The
Tax figure quoted is at a rate of ~104% on the
company's net profit. How does that work?...

[the drewster] 22/5/2007 09:58

American subsidiaries will be taxed in US on US profits, no worming away money to other parts of a global group (at least that's my understanding of it all).

Sell us a company for £1, then run it down and give some of the juicy bits to the lads in the office, then, just as it's about to turn round, offer us 14.5p per share to take back full ownership.

[katylied] 22/5/2007 09:54

By the bye... can anyone explain how this 'Tax on loss of ordinary activites' thingy works? This cannot be a real Tax payment (much too big), so how is it calculated and what does it actually mean?... TIA

[lord santafe] 22/5/2007 09:44

People paying 13 to 14p is crazy when the takeover offer is only 14.5p and thats only possible. Not even worth the gamble at 10.5p, which is why I did not buy any pre-market today.

[guru11] 22/5/2007 09:21

Sounds a good set of results but the presentation of accounts in my opinion is poor and not very easy to understand. If they are going to use sub-totals then the other figures should be indentented.

In fact the $2,224k being shown as a loss - is that not suspose to be a profit ?
Have they got a minus here instead of a plus?

A profit of $4,190k plus one figure, minus 2 other figures in my book gives a profit.

We have 4,190,745 plus

99,757 plus
1,858,293 minus
208,219 minus

In the a/c's 2,224,000 minus ? or should that be plus

[nilip] 22/5/2007 07:17

Here's the full RNS :



Cng Travel Statement re. poss. offer


RNS Number:9913W
CNG Travel Group plc
21 May 2007


21 May 2007


For Immediate Release


CNG Travel Group plc


Statement re Possible Offer


The Board of CNG Travel Group plc ("CNG" or the "Company") ("the Board") notes
the recent movement in the Company's share price. The Board confirms that it has
received an approach from a consortium ("the Consortium") led by PJ King and
Barry Liben, the group chief executive and president of Tzell Travel Group (a
wholly owned subsidiary of CNG) respectively, which may or may not lead to an
offer for the Company at a price of 14.5 pence per CNG Share (the "Possible
Offer").

Following the approach, the Company constituted an independent committee of the
board of directors comprising Luke Mooney, Ralph Manaker and Zara Stassin ("the
Independent Directors") to consider the Possible Offer. The Independent
Directors are being advised by IBI Corporate Finance. The executive directors of
the Company (namely PJ King and Willie Lynch) together with certain
non-executive directors (Seamus Ross Jnr and Michael Smurfit Jnr) are conflicted
from considering the Possible Offer because of their involvement with the
Consortium.

Should an announcement of a firm intention to make an offer be made pursuant to
Rule 2.5 of the Irish Takeover Panel Act, 1997, Takeover Rules 2001 to 2006 the
proposed offer price of 14.5 pence per share is at a level which the Independent
Directors would intend to recommend to shareholders.

However, shareholders should note that while discussions with the Consortium in
relation to the Possible Offer are at a very advanced stage there can be no
certainty that an offer will ultimately be forthcoming.

The holder of 1% or more of any relevant securities in the Company may from the
date of this announcement have disclosure obligations under Rule 8.3 of the Irish
Takeover Panel Act, 1997, Takeover Rules 2001 to 2006, as applied.

A further announcement will be made in due course. In the meantime, shareholders
are advised to take no action.


Ends.


Enquiries:

CNG Travel Group Tel: [phone]
Luke Mooney

IBI Corporate Finance Limited Tel: [phone]
Tom Godfrey
Brian Farrell


The Independent Directors of CNG accept responsibility for the information
contained in this announcement. To the best of the knowledge and belief of the
Independent Directors (who have taken all reasonable care to ensure that such is
the case) the information contained in this announcement is in accordance with
the facts and does not omit anything likely to affect the import of such
information.

IBI Corporate Finance Limited, a subsidiary of The Governor and Company of the
Bank of Ireland (which is regulated by the Financial Regulator), is acting for
CNG and no-one else in relation to the Possible Offer and will not be
responsible to anyone other than CNG for providing the protections afforded to
clients of IBI Corporate Finance Limited nor for providing advice in relation to
the Possible Offer.

[the drewster] 21/5/2007 21:10

While it nearly sounds the same, it's not quite the possible FORTY p offer of the year before last.

If Tzell is as good as they ever hoped we might believe, then it was valued at 70p 3 or 4 years back, so have they (the management) managed to erode value there as well?

I know it sounds like (is!) sour grapes, but a business once valued so highly, gets floated so we (the PI) can pay of the group's debt, then one bit get's "spun off to management" withhout the slightest reference to the financial terms, while now they want to buy the remainder back for 14.5p. I think I suggested a few months back that the "management" wouldn't end up losing out, just us, and this "offer" does nothing to change that opinion. Very unimpressed, and will mark all of the directors, past and present, on my "invest with extreme caution" list. Looks and feels like we've been had - though well done to anyone who managed to buy at the lows as you may well make a nice quick turn after all.

[cyberpost] 21/5/2007 18:05

possible 14.5p offer

[the drewster] 16/5/2007 08:30

Paint's nearly dry.

[the drewster] 27/4/2007 11:59

Winterfloods just dropped the offer to 8p, but almost instantaneously put it back up. Odd.

Seems like they will be leaving it to the wire again after all. Deep joy!

Only positive I can take from it is the the loss will offset some of the profits elsewhere and reduce the tax liabilities.

[robsy2] 13/4/2007 09:12

I have caught such a cold on this one that I am just waiting to see it through with some hope in my heart because I believe that Tzell must be ok and generating profits. All will be revealed in due course.

[the drewster] 27/3/2007 10:00

Is it the end of the month they have to tell us how bad things have got?

[latifs100] 16/3/2007 14:46

some large sells gone at 8p odd.. anyone in the know..i hold from 30p days

[the drewster] 15/3/2007 20:57

The fact you can buy these even more cheaply is hardly the most encouraging signal?

:-(