Europasia Education Share Discussion Threads

[tyranosaurus] 05/6/2006 18:37

It`s worth noting that there has not been even one trade in DBIL since they floated on Ofex.
Their value is therefore what EPE introduced them at.

Whether they are worth this is anyones guess.

[buffin] 05/6/2006 09:30

David Stevenson writes of "the 12 per cent stake in DBIL".

As I mentioned last month, we were diluted, and Simon said on 12 May (see post 59) -

"EPE's holding is diluted by the new investment, so we now hold around 10.8% of DBIL - though its now of course a more valuable business post the investment of new cash."

They confirmed this in the RNS of 15 May

DBI announced last week that it had successfully raised #1.5 million to fund
expansion of its facilities to meet demand for its courses. Following the fund
raising, EPE's stake in DBI is 10.8%.

Poor work by IC.

[james 2] 05/6/2006 09:03

Might be worth calling the chap who wrote that IC article to let him know that DBIL actually floated on OFEX 24/5/06 !

I agree these look decent value in the long term, but its worth remembering the loan notes [convertable at 5p] with 100% warrant coverage, might keep the price pegged back for the time being.

[painting] 03/6/2006 01:54

IC article 2 June (David Stevenson): "I noticed that another of EuropAsia's investee companies is looking to float on the market – DBIL or Dalian is another Chinese education company looking for an Ofex float which should value it at £20m. Add together the 12 per cent stake in DBIL, which could be worth around £2.5m, plus the 13.8 per cent stake in China Education Group, worth another £3.5m, and Europasia looks ridiculously cheap valued at under £3m."

As said above, been cheap for some time, but no-one taking any notice. Lets hope it gets highlighted at the London Asia seminar on 14 June in front of institutions who then start taking an interest, as one big buyer should be all it needs.

[timely] 02/6/2006 17:38

I missed out on one of its shareholders LDC a couple of years ago when they shot up from 4p to 20p in no time - I have no inside info but wonder if the same could happen to EPE one day?

[krishall] 02/6/2006 15:34

Unfortunately it's been 'undervalued' for ages despite various press mentions of it being 'cheap'. Therefore could remain 'ridiculously cheap' (and even get cheaper) indefinitely - or then again it could go northwards at short notice.
Anyone 'wise' enough to say which way they think it might possibly go.

[gagner2006] 02/6/2006 14:57

i that all it said painting - was there any rationale??

[krishall] 02/6/2006 14:55

And it's even chesper now it's just dipped to Offer price of 6p.

[painting] 02/6/2006 13:29

See comment on EPE in todays Investors Chronicle - "Europasia looks ridiculously cheap"

[tyranosaurus] 02/6/2006 13:18

Another 100k sold at 5.5p.

There must be someone selling a large amount at 100k per day.

If the MM`s don`t reduce the price they will end up with a lot of stock.

[Abuse team] 01/6/2006 06:04

Post removed by ADVFN

[buffin] 01/6/2006 01:00

They're obliged to deal at quoted prices within the "normal market size". It's a measly 3,000 - see "NMS" on the quote page.

[tyranosaurus] 31/5/2006 23:17

100k sold yesterday at 5.5p.

100k sold today at 5.25p.

Why is the spread 6p to 6.25p then ?

[timely] 12/5/2006 13:42

Starting to move up at last!

[buffin] 12/5/2006 12:56

I queried the DBIL holding and Simon Littlewood has replied himself

EPE's holding is diluted by the new investment, so we now hold around 10.8% of DBIL - though its now of course a more valuable business post the investment of new cash.

As seemed likely, though EPE's RNS yesterday didn't exactly make this clear, as I have pointed out in my email back to him.

Still undervalued though. This is LDC on a smaller scale - the case is made up of several segments which it's tricky to value accurately. Hopefully the presentation and roadshow is going to address this.

[gagner2006] 12/5/2006 07:22

Yep painfully undervalued.....

[painting] 12/5/2006 00:29

If float comes off at £20m, EPEs 12% stake worth £2.4m, against cost of £1.1m, a profit of £1.3m. Add the value of CEG stake, must be worth around £4m, and they have assets of £6.4m plus the UK businesses they own, less the convertible loan debt - so at least 12p a share in assets. And a market cap of only £2.7m, no wonder it was nearly all buys yesterday.

[buffin] 11/5/2006 14:47

From today's RNS

EPE holds a 12 per cent stake in DBIL, which it acquired for #1.1 million

[tyranosaurus] 11/5/2006 13:33

Dalian to float on Ofex with value of £20m.

EPE got 8% for 0.7m which values DBI at £12.5m. That means the stake will go up in value by 60%.

LACPEF have invested £2m for a 19% stake which values DBI at £10.5m.

I don`t think there will be much left for Ofex investors at a value of £20m.
I can`t see it going up by 50% in the first few months like CEG did.

They make less profit than CEG who are valued at £25m. CEG also have expansion plans in hand and a strategic alliance.

Having said that, I can see a good profit to be made if one takes a long term view. I will probably not buy on Ofex but will certainly watch it`s progress.

[rbonnier] 11/5/2006 10:30

Good rns today regarding another float on OFEX epes stake will be worth double what it paid but still not even a single trade.
Makes you wonder if this will ever do anything at all.

[krishall] 11/5/2006 07:14

Another with LDC 'interests' also investing in Dalian:

Acquisition

RNS Number:7776C
London Asia Chinese Private Equity
11 May 2006

11 May 2006

London Asia Chinese Private Equity Fund Limited

("LACPEF" or "the Fund")

First investments made

LACPEF, the China focused investment fund, announces that it has made its first
two investments, for a total consideration of #2.5 million.

The Fund has invested #2.0 million for a 19% stake in Dalian Business Institute
Ltd ("DBI"), a profitable Chinese education business based in Dalian, Liaoning
Province, China. DBI has six colleges and five faculties on the site, providing
3-year diploma, degree and distance learning courses. Being adjacent to Korea,
Japan and the far eastern area of Russia, Dalian is within the central region of
Northeast Asia. With this advantageous geographical position and convenient
transportation, DBI has been able to attract higher margin overseas students.
Dalian is the capital of Liaoning Province, and was recently voted the best city
in China to live

Victor Ng, director of the Fund, is joining the Board of DBI, which will be
seeking to list on the UK's Ofex stock market in the near future, sponsored by
London Asia Corporate Finance. The funds invested will enable DBI to continue
to expand its facilities to meet growing demand for its courses. DBI produced
pro forma accounts for the year ended 31 July 2005 showing profits of #1.7
million.

The Fund has also agreed, subject to finalisation of terms, to invest an initial
#0.5 million for an approximate 10% equivalent stake in FENet, a leading Chinese
business intelligence ("BI") applications and solutions provider, based in
Guangdong Province. FENet's software products enable companies to analyse data
from various sources within an organisation to provide management with detailed
information for decision making and strategic purposes. Founded in 1995, FEnet
has branches in Beijing, Shanghai and Chengdu, with over 150 employees. FENet
achieved profit after tax of #1.1 million for the year ended 31 December 2005.

John Manser, Chairman of LACPEF said: "Investor response to the fund has been
strong and so it is particularly pleasing that we are announcing our first two
investments. The managers have sourced promising investment opportunities and we
look forward to announcing further investments in due course."

Simon Littlewood, Executive Director of LACPEF, commented: "Following the
raising of the Fund in March, we have spent the last six weeks finalising the
investment terms on a number of transactions for the Fund, with these the first
two to reach closure. Both are established, profitable businesses with good
growth prospects in expanding sectors in China."


For further information please visit www.londonasia.com or contact:

John West/Matt Ridsdale Simon Littlewood
Tavistock Communications London Asia Capital plc
Tel: [phone] Tel [phone]


Hugh Field
Collins Stewart Limited
Tel: [phone]


About Dalian Business Institute

DBI is a Jersey incorporated company, with a 25 year contract for the management
of Dalian Business Institute in Liaoning Province, China ("DBIC").

Founded in 1997, DBIC is located in the hub of Dalian city in Liaoning Province.
It is a nationally accredited comprehensive three-year college focusing on
business and arts subjects, with its college diplomas recognised by the Chinese
Ministry of Education. There are currently over 5,000 students, based in the
campus in Liaoning Province, China. There are six colleges and five faculties on
the site, providing 3-year diploma, degree and distance learning courses in
eight specific areas: Business Management; International Trade; International
Accounting & Finance; Information Technology; International Tourism; Foreign
Languages; Business Laws; and Arts.

About FENet Co. Limited

Founded in 1995, FEnet is a leading provider of BI applications and solutions.
Headquartered in Guangdong Province, China, with branches in Beijing, Shanghai
and Chengdu, it has over 150 employees. BI refers to the methodology designed
to analyse data from various sources within an organisation to provide
management with fast and reliable information for decision making and strategic
purposes.


Additional info can be found on the Company's web site www.fenet.com.cn


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

[mangal] 09/5/2006 10:19

Well spotted painting; I think once ppl latch on to how huge this LDC-deal is for EPE, this will fly.

[painting] 09/5/2006 00:45

State owned companies in China often own schools and colleges as a left-over from the communist days when the local state company owned everything. LDC's latest deal to help privatise state assets could give EPE access to these schools & colleges.

[gagner2006] 07/5/2006 18:35

Latest RNS from LDC (probably Monday per Daily mail) may have something for epe, following mention of the establishment of a training college in the latest partnership....