Axia increasing their stake again. |
 Good morning all :)
Many thanks to gizmo555 for the heads up ! Much appreciated :)
Finally the political appetite to unwind EESL, a traditional loss making public sector organisation in India. A legacy organisation that has outlived its utility and purpose and probably a monolithic structure unable to adapt to the realities of new economic imperatives in India. Figuratively and politically, this could represent the "old India" and Intellismart the "new India" - a powerful, totemic signal to players and funders of the Industry.
Also indicates direction of travel as GoI has indicated that long term plan for RDSS smart meter rollout is to sell various Govt. Discoms and hopefully at a good profit, once their balance sheets are tidied up with increased revenues and reduced debt - hence the Govt grants and financial incentives (around 15% of capex costs)to adopt smart metering.
I think EESL will float this 49% as an IPO either fully or partially - there will be good appetite for this offering as it is in the energy space which offers predictable and growing revenues with the population and the growing economic stature of India.
Apart from local Indian appetite, there could be interest from Green/Infrastructure and Pension Funds from overseas. Who knows RR is trying to roll up all the UK Local Authority Pension Schemes to create one like the Ontario Teacher's Pension Scheme to optimise economies of investing scale - some funds from here could also be invested there ?
So I don't think this development (if it comes to fruition) will have a direct or immediately foreseeable impact on CYAN - unless Intellismart take over the existing smart meter contracts that EESL were awarded without Tender very early on in India's smart meter journey (about 10 years ago). I seem to recall that EESL were awarded about 10m smart meters but could be wrong. The problem was most of the EESL rollout failed very badly - so became a political noose and left a stink for smart metering as a concept and in my opinion delayed the adoption of the same nationally.
If Intellismart take over these EESL legacy contracts and then Intellismart go on to buy a stake in CYAN India, then we would get more business and possibly some retrofits (which will be low or no margin but nevertheless could be a strategic loss leader to gain goodwill and future work) from Intellismart by solving their problem !
Good luck all :) |
Gizmo555 brought this to our attention on the LSE BB:-
hxxps://mnacritique.mergersindia.com/news/state-run-eesl-plans-to-sell-its-49-stake-in-intellismart/
Perhaps we'll buy the 49% - we'd only need to raise £30M.
What's 51% of Cyan India worth? £30M? |
tightfist
Also who do you think Axia are and why their involved and how they came/have come into play?
Presumably they have seen what our new NED has seen and more!?
Must be industry players and have a lot of faith though they look like a family firm, I can't really see how they can get out without a sale unless their a conduit to something bigger down the line? |
It is difficult not to think that there is an overall "game plan" and always has been as so many connections are present if you care to look for them (and believe them!)I guess.
Ive always thought that was JC,s plan (though whether he could pull it off is a different matter) and why he keeps the BoD so weak.
Actually I thought nilli,s post from earlier re Peter Mainz was him becoming our new CEO on first reading!!
Now that would be something to invest on.... |
Hi tightfist
Thanks for your replies, I remember you have had some experience with business in India from previous posts.
Any thoughts on (how good or not!?) the Indian majority sale might be?
I would guess (now we have come this far since the first announcement) that JC is trying to negotiate for a smaller percentage sale (though still letting them have control so 51%?) and thus consequently retaining more of the profits to come back to shareholders here in time? Would mean giving us less at the point of sale though? A lot depends on what else is going on too such as the Eyasoft deal I guess?
What's 51% of CyanConnde India worth!?
So many moving parts and so little information that one can rely on, its such a gamble being in here in quantity however much you like the potential and that's about 12 years on from when I first came on board!
Ridiculous really. |
Hi NTG, I hope Axia are there as one of the funding strands, yet to be revealed..In my business days we had a licensee in India whose pricing was unfathomably low - but still made sound profits - from the outside, a real conundrum. After a while it became clear to me that India was a sufficiently large domestic market (now serving 1.4 billion people) to sustain its own microclimate of suppressed economics. . This is why I was encouraged by the move to place most CC global functions in India, and get the costs compatible..If they can then match the quality, performance and service level/communications expectations of world emerging markets we are likely onto a highly profitable export winner. I believe that their CEM's reside in EOU's; for me this indicates the strategic thinking. |
Hi NTG, see the Miton MINI RNS of the 18th. They are likely to Reconstruct and roll some of the MINI holdings over into other Premier Miton funds. .So we live to fight another day! Put overhang assumptions on hold? |
Yes, he was Mr Orders. |
Remember him? |
📢We are excited to announce Peter Mainz as our new Chief Executive Officer (CEO).
Peter has been a valued member of our Board of Directors since 2018 and brings extensive experience in the metering industry. Throughout his career, Peter has held key leadership positions, including CEO, CFO, and Board Chairman at several leading companies.
We would like to express our gratitude to Werner Lieberherr, who managed our company with great dedication during his tenure as CEO.
We welcome Peter as we embark on this exciting new chapter at Landis+Gyr.
Please read our official press release for further information: hxxps://lnkd.in/d7PQAsQE
#ManageEnergyBetter #TeamGreen #Announcement |
Read the blueprint inthetin....they buy control of path to profit ....it's still electrica but the shadows are visable |
Whoever is buying wants what Mr TU has got for sale (and some) but until JC & HP pull their fingers out we're locked in with this one buyer, who is not prepared to pay any more than 10p. |
Hi Gizmo555
OK. What are big players buying? Example(s)? |
One thing that does concern me is I can't really find anyone I talk to with a good word about the chances of us getting any type of good deal from an Indian company!?
They always want it all for themselves they tell me.
Maybe that's why its taking so long, JC not happy with terms and has somehow brought in Axia to help?
Whoever they may be.... |
Thanks for your reply earlier Multibagger. |
Excellent news of late re the new NED buying in the open market.
Wait for the (seismic!?!?) uptick when Miton have cleared in fact perhaps... |
A good thing Axia are there or the share price would be in a right mess again one assumes!
Although is it all staged especially from a timing pov as some suggest? |
Why don't Axia just go to Panmure and do a straight deal on the entire block (they require) of Miton shares being sold? |
Buyout the chain of control ...? |
How many buyouts can you name? |
Installations increasing is all I see ...and big players buying out parts of the chain of control |
Hi Gizmo555
All good thanks. I hope that all is well with you too.
Time will tell if Axia = progress or not.
GL
ITT |
Hi inthetin hope you good ...electrica Rns July 24....blueprint ...maybe .. axia = progress |
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