Telit Communications Share Discussion Threads

[blah blah] 28/9/2017 13:30

If you think Oozi is going to pay any attention to a lock in agreement, please let me have your email address as I know a Nigerian prince who has an exciting offer just for you.

[frazboy] 28/9/2017 13:08

Thanks Senor, I wasn't aware of that. The question is, which will come first, the end of the lock-in period (for oozi and the institutions) or the Trading update.

[senor_sensible] 28/9/2017 13:02

Senor_sensible
28 Sep '17 - 09:25 - 6087 of 6094 0 0 Edit
Result of secondary placing of Existing Ordinary Shares in Telit Communications PLC



Boost B.V. and Mariselia Ltd (together, the "Sellers"), entities controlled by Oozi Cats, CEO of Telit Communications PLC ("Telit" or the "Company"), announce that further to the announcement on 23 May 2017, they have successfully sold 7,081,620 ordinary shares in Telit (the "Placing Shares") at a price of 340p per share (the "Placing").

Funds from the sale will be used to repay Mr. Cats' three-year secured loan from Viola Credit Funds, announced on 29 May 2014, and following repayment of the loan, Mr. Cats will no longer have any financing arrangements attached to any part of his interest in the Company. Following the repayment of the loan, Mr Cats will also lose the voting rights on the 1,080,000 ordinary shares held through Viola Credit Funds in relation to the loan.

Following completion of the Placing ("Completion"), Mr. Cats will retain beneficial interests in 14,810,599 ordinary shares representing 11.59% of the issued share capital of Telit. Mr. Cats has agreed not to sell any shares in the Company held upon Completion for a period of 180 days following Completion.

Joh. Berenberg, Gossler & Co. KG ("Berenberg") acted as sole bookrunner and placing agent in relation to the Placing.

[senor_sensible] 28/9/2017 13:01

Firesale NAV is approx 10p per share IMO, Until outlook improves a realistic valuation for this company is about 50p per share. Assuming no further dilution. If I was Catz I would sell out in November too and get what I could.

[frazboy] 28/9/2017 13:00

How do you figure that wiseacre? As far as I know he can sell today

[senor_sensible] 28/9/2017 12:52

Whats the NAV for this share?

[wiseacre] 28/9/2017 12:48

And so come November Catz can dump his 11% holding. He will want to hold up the price until then. What a can of worms!

[frazboy] 28/9/2017 09:56

Agreed Sphere25, we should expect a holding increase from Mr Tai in the next few days, unless, he does what the other chap did, namely "Davide Renato Ugo Serra", who waited 25 days before informing the market he had gone below the 4% threshold.

[sphere25] 28/9/2017 09:47

"a review of certain elements of the Group's financials"

Only certain elements also. Smells all wrong.

That said, there is clearly support in the market. It is likely Run Liang Tai, who appear more than happy to throw their money away. Stock would have fallen alot more otherwise imo.

[suneday] 28/9/2017 09:25

Unidentified "Independent third party accounting firm". I would have thought they could be more transparent in their reassurance.

[senor_sensible] 28/9/2017 09:25

Result of secondary placing of Existing Ordinary Shares in Telit Communications PLC



Boost B.V. and Mariselia Ltd (together, the "Sellers"), entities controlled by Oozi Cats, CEO of Telit Communications PLC ("Telit" or the "Company"), announce that further to the announcement on 23 May 2017, they have successfully sold 7,081,620 ordinary shares in Telit (the "Placing Shares") at a price of 340p per share (the "Placing").

Funds from the sale will be used to repay Mr. Cats' three-year secured loan from Viola Credit Funds, announced on 29 May 2014, and following repayment of the loan, Mr. Cats will no longer have any financing arrangements attached to any part of his interest in the Company. Following the repayment of the loan, Mr Cats will also lose the voting rights on the 1,080,000 ordinary shares held through Viola Credit Funds in relation to the loan.

Following completion of the Placing ("Completion"), Mr. Cats will retain beneficial interests in 14,810,599 ordinary shares representing 11.59% of the issued share capital of Telit. Mr. Cats has agreed not to sell any shares in the Company held upon Completion for a period of 180 days following Completion.

Joh. Berenberg, Gossler & Co. KG ("Berenberg") acted as sole bookrunner and placing agent in relation to the Placing.

[frazboy] 28/9/2017 09:11

Previously on this board someone commented that those institutions that took part in the previous placement (5th May) were locked in for 6 months. Can anyone point me at any literature that supports this statement?

edit: found it "he Placing is expected to settle on 10 May 2017, subject to Admission. Following completion of the transaction the Company has agreed to a lock-up of 180 days."

[senor_sensible] 28/9/2017 08:22

debt ratio is increasing and financiers are starting to insist on more oversight, could mean previously the company have used debt to pay dividends.

Cost cutting and rationalisation of product lines will reduce financial burden in the short term but this will also kill future growth. Any short-mid term future free cash flow will go to paying down the debt, and no doubt the waiver will come at a premium in terms of interest rate and charges applied by the banks

IMO best way of getting back on track is a placing in order to pay down debt, and IMO this will come at a massive discount to current price to get II backing. I will continue to watch from the sidelines, shorters seem to have called this right :-(

[muffster] 28/9/2017 08:10

Open again, phew. Upped shorts

[muffster] 28/9/2017 08:05

City index closed to shorts, wonder why

[frazboy] 28/9/2017 07:57

Are the management still confident of 15% revenue growth next year, I wonder?

That statement asks more questions than it answers.

[frazboy] 28/9/2017 07:53

So, what will the Chinese(or otherwise) investor do? I assume they won't step in to the support the price at the opening bell (if of course it needs support) but will wait for the price to find support and then start buying.

[blah blah] 28/9/2017 07:51

Still being deceptive, describing the downgrade of revenue and EBITDA as 'narrowing its financial guidance'. If you can't trust them to be honest about what is right in front of you, what about all the things you can't see?

[wedward] 28/9/2017 07:44

good of them to arrange a breach of covenant waiver early

[muffster] 28/9/2017 07:34

We are focused on implementing a refreshed, more disciplined and prudent, as well as transparent, approach to corporate governance and the delivery of increased shareholder value.In other words we are letting you down gently as the old approach was smoke and mirrors.

[sphere25] 28/9/2017 07:31

Oh dear, oh dear, oh dear! It's all starting to drip out!

The crooks are downgrading revenue and EBITDA, as well as reviewing product lines, because they're cooking the books. As for the convenant issue, this company doesn't generate free cash flow.

This bit was worth a good laugh too:

"Telit expects to see, as normal, significant cash generation in the second half of the financial year"

Been saying it's going to get ugly for a while and it will keep getting uglier for here. I am short again now, but all the signs are there to make even the dimmest wonder what is actually going on here.

All imo

[macarre] 28/9/2017 07:25

Where there's smoke there's fire.Tone of the RNS gives more reasons to be bearish.

[owenski] 28/9/2017 07:23

Wonder if Oozi's been on the blower via the back door giving advice especially on strategic rationalisation??? Up till now he's still a significant shareholder and Telit was his baby.

[owenski] 28/9/2017 07:20

Looks like banks supportive, which means TCM is a going concern, governance and reporting look likely to be tightened up. Cash flow improvement in second half and guidance for full year T.O. and EBITDA.

Looks to me they're going for a head count cull.

Still a decent business here.

Lets watch the short positions.

[suneday] 28/9/2017 07:19

Silence is golden.