Sepura Share Discussion Threads

[jm2009jm] 29/3/2017 07:54

this is standard.. they would be remiss if they didnt

[mister md] 29/3/2017 07:52

Sepura has been notified by the UK Department for Business, Energy & Industrial Strategy (the "Department") that it is currently minded to initiate a review of the Acquisition.

[investment dave] 28/3/2017 07:07

Reckon we may hit 18p today

[tsmith2] 27/3/2017 12:27

18p fair value. In

[tabhair] 27/3/2017 11:23

Hmm, there is quite a lot to digest here. I can't help but feel if you were a lawyer with expertise in German/Spanish competition law, you could potentially make a killing here as all information that has come out has been in the public domain, it's just no one has had the wit to be able to put it together.

Going back to the filing itself, I think it's emphatic enough that German competition authority clearance no longer needs to be sought. They will have run through the figures, they would not update the market unless they had not first gotten legal advice and were confident of making such a statement to the market. So realistically, they just leaves Spanish approval, which should be forthcoming, right? Well, I am not so sure. I have read the documentation on Spanish merger procedures, and it seems to me that perhaps it's not clear cut.

Sepura submitted their application to the Spanish competition authority on February 9th and announced shortly after that they expected approval on March 9th. Having consulted Spanish merger approval documentation, these dates tally with what's usually expected (documentation says that phase 1 process should take no more than 1 month). If that's the case, then why are we still waiting over a month and a half later? I can only imagine their are two reasons why we are still waiting. Perhaps the Spanish competition authority is swamped, or maybe it's just a case that the Spaniards aren't as efficient as their German counterparts (if anyone spoke Spanish and wanted an information edge, you could ring the authority to find out). Alternatively, the application might have been stopped for the same reason it was in Germany. Either way, it feels like a decision on Phase 1 approval should have been made by now.

As for the second part of the RNS, I don't think it should be ignored either. We know Sepura are in a perilous state with regards to their financial position. We now learn that they will be liable for another £1M in expenses (lawyers I am sure have their meters running). Remember, if this deal isn't finalized by June 30th, then Hytera can walk away and allow Sepura to presumably go bankrupt. Potentially, they could buy the company out of bankruptcy debt free for less than the current cost. Remember if debt covenants are broken, the banks will only care about getting their money back. Potentially they and Hytera would be will within their rights to foreclose on the company as debtors is possession and do a deal between themselves.

In all this, I have to say there would be a certain painful irony for Sepura if Spanish competition authorities blocked the move. Remember, the reason that Sepura have to go to get Spanish approval was because of their takeover of Spanish company Teltronic, the very same Spanish acquisition that has brought Sepura to their knees.

Good luck to anyone getting involved here. But remember that there is still plenty that could go wrong here.

[1gw] 27/3/2017 10:13

Well perhaps it isn't completely straightforward? Although with hindsight there was no need to notify, perhaps having notified and particularly with the regulator having decided that they should go for a Phase II review, the regulator has some say in whether the review should be halted?

[tsmith2] 27/3/2017 09:56

Think co could have said more emphatically German clearances not needed.

[shroder] 27/3/2017 08:47

Last years AR up to April 16, Germany 36.2 €m

At a guess, I would say the relevant part is listed here:

"the domestic turnover of at least one participating undertaking was more than
€ 25 million."

[tsmith2] 27/3/2017 08:42

Maybe just being clever about it. German clearance was seen as a big hurdle..That seems to have been removed.tempted to go back in again

[shroder] 27/3/2017 08:17

Good point, is it worth trying to establish the threshold v last years figures for Germany?

[tsmith2] 27/3/2017 08:15

Agreed shroder

[1gw] 27/3/2017 08:10

I think the implication is that FY17 German revenue has come in below what they were expecting when they started the approval process. So the question is whether this is indicative of overall revenue and if so whether overall FY17 revenue is going to come in significantly below what Hytera were expecting.

Also rather odd that there's no mention of progress with trying to get the covenants waived given that we're almost at the end of March.

[shroder] 27/3/2017 08:08

Agreed, although you have to wonder why such a simple metric wasn't checked at the outset?

[tsmith2] 27/3/2017 08:04

Admittedly excellent news

[investment dave] 27/3/2017 07:29

Good news today looks like a certain now.Funny we are saying 20p is good news though

[the stinger] 27/3/2017 07:28

Just Spain now, looks like its going ahead ok at 20p. Maybe a good entry price now.

[investment dave] 26/3/2017 21:05

Is it news this week well overdue

[joe2016] 26/3/2017 20:45

Whats going on next week on Friday, 31. March ??

Going down to 9 Pence after bad year end results...... order some stocks more an hope for Hytera deal....

or the result is not so bad and we go back to 20 Pence.....

for this company it`s so difficult to get information about it....

[amd554] 14/3/2017 17:00

Only need to read the annual reports, from being debt free with a very healthy bank balance the BoD made a number of terrible decisions. One director in particular was trying to increase his salary and bonuses way beyond what he deserved. Shame that engineers had to pay with their jobs.

[l0ngshanks] 11/3/2017 20:31

I suspect the directors rather than the managers were responsible for destroying shareholder value. For the sake of the employees and customers and the brave shareholders who remain, let's hope the Company's future is secured very soon.

[joe2016] 11/3/2017 19:38

It`s really bad what happened in the last 12 month on this company.
I can`t believe that the managers destroyed such a good company.

the years 2012 untill 2015 were really great and now we have only 13 Pence left.......

I really hope that the offer from hytera goes threw. Better than loose the hole investment.

Let`s look forward what sepura is showing on the year end on 31. March.

I think the decision from the German Bundeskartellamt takes more time (maybe untill end of April).

All the Best for Sepura Stock holders !!!

[1gw] 01/3/2017 10:55

"The Sepura Directors emphasise that, on the basis of the information currently available to them, they consider it likely that if the Acquisition is not approved by Sepura Shareholders and subsequently completed, the board could be forced to implement strategic alternatives, including an accelerated turnaround plan, alternative funding arrangements or the sale of certain assets, any of which would carry significant risks and uncertainties and would probably lead to a material reduction in the value attributable to Sepura Shares."

From the scheme document.

[woody888] 01/3/2017 08:26

Why then accept the 20p offer....

[investment dave] 01/3/2017 00:23

What about if the deal doesn't go through surely the share price should be higher than 20p!??? They only just raised 65m at 35p

[the stinger] 28/2/2017 21:22

woody, you need to relax, and await the Germans decision, either the deal will/or will not happen at 20p. However like i say,,,'IF' it does go through at the 'agreed 20p' then its a 40% easy gain from here. If it doesn't then you'll probably see less than your 9.75p!! therefore I dont get your logic. The share price is currently at 13.75p which is about right at this juncture given the delay's,, but for a few nervous sellers it should have probably been around 15p which is where I see it settling until further news one way or other.

If you believe the deal wont happen then why would you buy at 9.75 when you would probably get the shares for less than that.

Seems to be a very good fit for Hytera though, hence after lengthy DD and shareholder agreements both sides they have made an 'accepted' offer which was probably discounted at 20p because of no other offers..these Chinese players are no fools..

Just facts..that's all..and I don't hold any shares at present.