Ebt Mobile China Share Discussion Threads

[jimelson] 29/12/2007 10:13

thanks for your replys. I guess when i said the bid price i meant about 30p+ which i had read somewhere (guess cant totally believe that), but its just with most take overs i have seen they usually rise to near on that price when the market beleieves a takeover is pos, but when it doesnt it usually fails.

I do hold some, so am hoping for the takeover. If it fails i would sell and hopefully get in at a lower price.

[azalea] 27/12/2007 23:39

divinausa1
I agree. There are all sorts of considerations to be taken into acccount before an offer is made and accepted. Far too early to draw any conclusions.

[divinausa1] 27/12/2007 20:07

but what is the approx bid price? if they have had one interest there is not to say there may become others interested, afteral i would of thought there would be many companies that would be interested in having 1 billion customers in a product in todays world that is a must have ......

[jimelson] 27/12/2007 19:25

From what i have seen from previous takeovers i have found that if the share doesnt rise to the approx bid price quite soon or near then it has been unlikly to be taken over, and talks have failed.

[azalea] 26/12/2007 11:24

Its gone up 20p on news of an appproach alone. IF the substance of initial talks is not rejected out of hand, then it could rise further. The greater the passing of time without rejection, the greater the potential for a formal bid.

[jimelson] 26/12/2007 10:35

Hello,
Why has this share not risen more? I thought it was going up 25p? Has the bid failed?

[divinausa1] 25/12/2007 15:48

and will be going up for few years yet.

[azalea] 25/12/2007 13:15

China's mobile phone users reached 539m in November, up 78m since end of 2006.

[silverthread] 23/12/2007 18:52

I thought the earlier post from Explorer - pointing to the link between Audley and Carphone Warehouse provided by John Redwood - was interesting.

[azalea] 22/12/2007 11:47

I have just read in the D.Tel a brief reference to EBT receiving an approach and was surprised to read Audley European Opportunity Fund being described as a Hedge Fund and thought to be the bidder. Consequently, I may have got its status wrong, if so my apologies all round. That said, it puts a somewhat different slant from my perspective on its 29.15% stake in CBM and the ongoing reviews being held by both parties concerning CBM itself and the latter's holding in WTN. Interesting times ahead!

[azalea] 21/12/2007 18:56

I do not see Audley making a bid, it not their bag; but instead with its major stake act as the conduit for a third party. Audley, is currently in a potentially similar position with CBM/WTN.

[explorer88] 21/12/2007 14:19

pj - AIM takeover rules prevent Audley offering 20p for EBT, because of price of their previous higher purchases, earlier this year.

Aim takeover rules mean, if i recall correctly (i read the relevant paragraphs a couple of weeks ago, and will try and track them down again and post here) that when over 30% Audley would have to make an offer for the whole company at a price not lower than the highest price they have paid in the last ? months (which i calculated to be approximately 25p then - will re-check and update after Christmas party)

[philjeans] 21/12/2007 14:14

But nothing to stop Audley offering 20p is there?

Then subsequently floating at 50p in US after financial engineering.

[explorer88] 21/12/2007 14:11

pj - that would seem to be the idea ...

... however in addition to prospective cash offer from Audley at 25p +, EBT are looking at strategic alternatives and, imo, winning bid is most likely to be from CW value around 30p + (which means that JT still makes a decent % on the shares he bought at 25p earlier this year)

either way, Audley / JT / existing investors will do well. Final bid over 30p would also benefit those who invested last May.

[philjeans] 21/12/2007 13:56

So, basically, the cheaper he can get it for, the more he'll make floating it off again on Nasdaq; or have I misread something?

[explorer88] 21/12/2007 13:40

explorer88 post 577 7th Dec:

fwiw, i think we may see Audley continuing to buy up to around 18-20p, adding a few more %, followed by an offer for the company at between 25p-30p.

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explorer88 post 578 7th Dec:

JT - news is leaking out - better be quick in your buying, otherwise someone else will snap up the shares ;-)

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EBT Mobile China poised to join Nasdaq
By David Blackwell

Financial Times

Published: December 21 2007 02:00 | Last updated: December 21 2007 02:00

EBT Mobile China, the retailer of mobile phones and services, appears poised to be the first company to leave Aim and join Nasdaq in the US.

Audley - the hedge fund run by Julian Treger, best known for his role a few years ago in UK Active Value, the shareholder action group - has built a 25 per cent stake in the company this year. It reckons the company has been undervalued by Aim and will attract a much higher rating on Nasdaq.

EBT, which is trying to emulate Carphone Warehouse in the Chinese market, reversed onto Aim in August 2005, raising £4m through a placing at 17p. Since then it has consistently increased revenues and the number of retail outlets it operates in the affluent eastern areas of China.

In May last year it raised another £5m at 30p a share. But when it returned for further funds early this year, the placing to raise £7.4m was priced at 22p a share. The shares closed yesterday unchanged at 13¾p, giving the company a market value of £30m.

Audley proposes to take the company from Aim via a cash offer at a premium to the share price. It claims investors have shown little interest in the company in spite of a strong operational performance. In addition the company has strong links with US companies such as Motorola.

EBT was expected to move into profit this year but in August it warned of delays in its store opening programme and of falling prices because of a lack of new handsets, which knocked the share price. Nevertheless, it reported a 65 per cent inc-rease in the total number of stores in the first half to 238, and a 41 per cent rise in revenues to Rmb317m (£20.8m).

[anusol] 21/12/2007 11:02

thanks Divinausa..... so 12:30 close is to enable serious afternoon drinking sessions to take place?

[divinausa1] 21/12/2007 10:23

monday shut 12:30pm 27th thursday back to normal

31st 12:30pm shut wednesday another year...

[anusol] 21/12/2007 10:17

does anyone know what days the market is open next week? does it just close xmas day & boxing day?

[explorer88] 21/12/2007 10:10

it's tough all this partying :-)

[anusol] 21/12/2007 10:08

thanks Explorer - bit hungover this morning, hence my apologies for using wrong currency. Damn, and another Christmas party tonight.... its a hard season for the liver.

[divinausa1] 21/12/2007 10:08

philjeans - 21 Dec'07 - 09:36 - 592 of 596


Be very careful here; this has been falling for months and for good reason - heavily loss making; few solid assets and a sky high valuation!

If A bid comes off, all well and good but, if not, this will plummet!
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thats why broker fair value is 36p going forward yah i know its silly season but your taking it to the extreme

[anusol] 21/12/2007 09:59

£40m market cap (or £50-£60m to buy out shareholders?) isnt going to be noticed by the big boys e.g. Carphone Warehouse. Does anyone have any guesses as to who might be interested in acquiring a big foothold in the Chinese retail phone market? CW seems th obvious choice.

Lets not forget that they turnover £500m, and there's probably a fair chunk of savings to come out of any merger with a large player, so even the current loss is no doubt contribution earning for someone.

[explorer88] 21/12/2007 09:55

pj - sorry, don't agree with you on this occassion.

eiffel - no