Rubicon Software Share Discussion Threads

[ndege kidogo] 28/6/2012 15:46

The proactive investors article is blue sky tosh. How can you raise US$ 15/30m, lease 40 Airbus 320 type jets and end up carrying very little debt? The US$800m valuation is beyond ludicrous. Also I question where all these passengers are coming from for travel between hubs. African countries are still divided internally on tribal lines; for example how many Kikuyus in Kenya will have friends or family to visit in Accra or business to do? The very few who do will be in the diplomatic service or other international institutions where cheap travel is not exactly a discipline. The first thing most Africans do when they make some money is to buy a Mercedes and the second is to visit their money in Lugano not Lagos. I reckon the passenger numbers will take ages to materialise, way beyond 3 years. Best watched for the time being from the plane spotters gallery.

[aim_trader] 28/6/2012 14:33

2:59 pm
FastJet targeting the last great frontier for air travel
It is an intriguing combination: entrepreneur Sir Stelios Haji-Ioannou and Lonrho, one of the preeminent names in African trade. If you've been reading the business pages you will know the two have come together to form FastJet, Africa's leading low-cost airline.

If FastJet does achieve its ambitions, then the investment should prove a very shrewd one.
That targeted US$1 billion a year of revenues might reasonably generate an EBITDA margin of 10 per cent, based on the performance of other operators.
Applying a conservative multiple of eight times that EBITDA you might then have a business worth US$800 million in as little as 36 months carrying very little debt.

[tomboyb] 28/6/2012 08:36

Well - If u were to start a budget airline you probably could not get anyone better than Stelios who sees Africa as the last frontier in aviation -

Having said that the EZJ price / share price has gone from strength to strength -

A lot of peeps not happy with the transactional terms although it looks like the institutions that got shares at 4p are holding on.

On the launch of Fastjet.com u need the hype - u have stelios + easygroup - can they pull it off?

[cocorico2009] 28/6/2012 08:11

i think stelios joining was the reason for the rise yesterday, therefore if he does I wouldn't expect too much more of an immediate positive impact on the share price
however, if he doesnt, then i can see an immediate huge negative impact on the share price and for this reason i´m sorry to say for now 'I'm out'

GLA
coco

[tomboyb] 28/6/2012 07:38

Big day tomorrow - Reputations, RTO, everything flying around at the AGM -

AND it will be interesting to see if STELIOS joins the board.

[tomboyb] 27/6/2012 11:26

well - 2 days to go before AGM -



"In addition, easyGroup has the right to nominate two directors of the Rubicon board. Its chairman Sir Stelios Haji-Ioannou and Ed Winter, formerly COO of easyJet and founding director/COO of low-cost airline, Go, are expected to join the board following completion of the acquisition. Mr Winter is expected to be named Rubicon's CEO-designate."

Winters + stelios himself coming on board?

[ndege kidogo] 26/6/2012 21:53

Interesting situation here and hard to call. The current share price says the deal's a turkey but I cannot hear any background noise to indicate that the institutions are going to call Xmas early. Probably will end up flapping down the runway and never gain any altitude before crashing and burning.

[tomboyb] 26/6/2012 09:32

Well i hope something can be pulled off here - From a reputation point of view - the share price looks embarrassingly poor - There needs to be confidence in the transaction as well as the share price -

And it does look like a few reputations are on the line here -

[tomboyb] 26/6/2012 09:17

Well the share price action can't be good for Stelios et al - a very big name to have but with institutions getting in at 4p the current share price represents a significant fall.

[ndege kidogo] 23/6/2012 13:01

Significant fall in the share price over the last few days. Maybe, just maybe, the institutions have got the boll*cks to vote this down? If I was them I'd be inclined to say give me Stelios and his henchmen but leave Lonrho's Fly540 out of it or the deal's off.

[pillion] 23/6/2012 07:25

Very interesting post ndege kidogo

Glad I didn't dive into Rubi !!

[ndege kidogo] 19/6/2012 18:31

Studied the re-admission document and this deal has the aerodynamic properties of a turkey; and Artemis and the other institutions in at 4p have just been stuffed. Lonrho has injected in about US$ 26m of net assets for 75% of the company which at the current price values their stake at about £ 38m so they're ahead of the game. Stelios gets 5% of the company for nought and a minimum of US$ 1.1m pa for 10 years ( 0.5% of all revenues and US$ 50k per month) . White ,Lenigas and the other 2 directors clip £ 200k pa between them. Add in professional fees for financial PR, PLC auditors, NOMADS, gonads and such like and you've added about £ 1.3m to the annual running costs. Overlay that on first quarter losses of US$ 6m ( after $ 20m last year) and it's pretty clear that the £ 8m cash raised last December will run out before long.
Looking at the business plan Fastjet want to fly A320 type jets out of Accra. So why do a deal which brings them 7 turboprops and 2 obsolete small jets in Kenya, 2 turboprops in Angola and one turbo prop in Ghana? Wrong planes, wrong locations and saddled with long term leases and flight crew and ground engineers certified for the wrong planes.
Rubicon's net tangible assets are about 1.3p per share. For me that's about the right price for a loss making airline in Africa. One to watch and see if Stelios pulls something off; but don't invest before two more capital restructurings.

[tomboyb] 17/6/2012 17:23

Thanks for that AIM_Trader - Interesting interview and where they see themselves especially within RUBI - Hopefully soon to be renamed Fastjet.com - And it also looks like Stelios himself is coming on the board.

[aim_trader] 15/6/2012 16:48

FastJet up and running in Africa as easyGroup joins Lonrho and Rubicon
Friday, June 15, 2012
Geoffrey White, CEO of Lonrho (LON:LONR) and Ed Winter CEO of FastJet (LON:RUBI), tells Proactiveinvestors that FastJet is set to build a new low cost carrier in what Geoff says is possibly the biggest potential low cost carrier market that has not yet been exploited. Ed says that FastJet will be democratising air travel enabling people that, up until now, had only dreamed of being able to fly while raising the bar on safety to a global standard.

[tenapen] 14/6/2012 17:41

Africa the last frontier for aviation industry, says easyJet founder

Africa's aviation industry has been through a turbulent time recently. Two weeks ago a plane belonging to Nigerian airline Dana Air went down over Lagos killing all passengers. Just days before a cargo plane crash landed at Ghana's Kotoka International Airport. Last week Kenya's Jomo Kenyatta International Airport also had to be temporarily closed after an Egypt Air aircraft veered off the runway and blocked other planes from taking off and landing.

Cont...

[tomboyb] 13/6/2012 15:22

"EasyGroup will be expected to appoint two directors to the board of Rubicon - likely to be Stelios and Ed Winter, former chief operating officer of EasyJet and founding director of low-cost carrier Go."

[lucky_punter] 13/6/2012 13:26

Lonrho Aviation will execute the deal through a reverse takeover of AIM-listed Rubicon (LON:RUBI), which will give the business a separate listing in London.

[tomboyb] 13/6/2012 11:06

June 13, 2012 11:12 am
Sir Stelios outlines Africa airline plans
By Andrew Parker and Rose Jacobs





The ft has responded as well -

[tomboyb] 13/6/2012 10:39

Main Page of the Guardian -

[tomboyb] 13/6/2012 09:33

Stelios moves closer to Fastjet launch

26 minutes ago

Sir Stelios Haji-Ioannou is a step closer to forming a new low-cost African carrier following the sale of Lonrho's aviation business to British-based investment firm Rubicon.

Lonrho confirmed it had sold its aviation unit to Rubicon for $86 million in Rubicon shares. As part of the deal, Stelios's easyGroup will own 5 percent of Rubicon, according to reports.

The planned Fastjet carrier will be developed on the existing Lonrho Aviation platform under the Fly540 brand.

In a statement Sir Stelios Haji-Ioannou said: "This is another small but significant step in bringing the dream of low cost air travel to millions of people in Africa – the aviation industry's last frontier.

"Past experience shows by halving fares, a successful low-cost carrier can encourage those people, who have never previously travelled by air, to fly
"For Africa, with its densely populated cities separated by great distances - this means a potential new market of millions."

Rubicon said: "The combined talents of Rubicon's management team and our partners from Lonrho and Sir Stelios' easyGroup will transform Fly540, already a growing and successful business, into Fastjet, a low cost, point-to-point, no frills all jet airline for Africa."

The statement added: "Plans for the launch of 'Fastjet' are underway but not yet finalised and the introduction of an appropriate fleet of modern jet aircraft may require the raising of additional funding".

FastJet will fly between Kenya, Tanzania, Ghana and Angola and the average fare will be $70-$80. Ed Winter, former easyJet chief operating officer will become Fastjet CEO.

Flights are expected to take off before the end of the year.

[345654] 13/6/2012 08:29

3.45p to buy mid price

[tomboyb] 13/6/2012 08:10

Rubicon only chaps - !

There is a small seller here thats given an opp @ these levels -

[345654] 13/6/2012 08:04

Topinfo

Difference is i hold a stock long enough to see the real gains, you cry everytime you see a takeover because once upon a time a few years back you pump and dumped it, good to see you whinging on your thread, you are almost alone now, everybody knows your game.

Like i said if you want to take this further, like to court let me know, i am happy to take money off you when you have to open your books on your trading activity showing you dumping stocks while posting fancy broker notes and targets.