# VGL - Volante Group



## Narkov (6 March 2006)

*VGL - Volante Group Limited*

*OTHER INFORMATION* 
Sector:	Software & Services
Market Cap:	140.63

*PRINCIPAL ACTIVITY* 
Volante Group Limited (VGL) is an Australian IT procurement and services company. The company encompasses four business divisions comprising Volante Systems, Volante Solutions, Affinity IT and Global Remarketing.


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## Narkov (6 March 2006)

*Re: VGL - Volante Group Limited*

So whats the general consensus? CDR increased their offer to $1.15 ($1.05 cash plus VGL dividend plus the balance of 10 cents and the divvy). The offer is up from $1.01 straight cash.

What I can't understand is when it was hostile the VGL board came out with "independant" advice stating the SP should be $1.27 up to $1.44. This new CDR offer is well under the $1.27 minimum and yet the board comes out supporting it. WTF??!! They go on to justify it by saying a franking credit of 4.3 cents makes the new CDR offer worth $1.193. 

To top things off VGL shareholders would have received TODAY (ie. same day as revised CDR offer) a letter dated 1 March confirming the independand experts valuation of $1.27-$1.44 and stating you should REJECT CDR's $1.01 offer.  Given the VGL board reaffirmation of the $1.27 minimum price only FIVE (!!) days ago how can they now accept 12 cents less?


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## Nicks (9 March 2006)

*Re: VGL - Volante Group Limited*

Narkov - get over it and be happy, your stock was trading much less than this last year.
Boards talk things up to get the offer up.. and thats what they have done.
CDR is a better company anyway, take your money and invest in them.


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## Nicks (22 March 2006)

*Re: VGL - Volante Group Limited*

Looks like Volante will soon add value to the Commander business.... increasing amount of shareholders are taking up the offer.


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## mojo (27 March 2006)

*Re: VGL - Volante Group Limited*

can someone who knows, tell me what happens if we dont sell our vgl to commander?


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## Nicks (29 March 2006)

*Re: VGL - Volante Group Limited*

Your stock will lose 30% of its value (imo).

Why? hit a low of 0.65c prior to CDR takeover speculation. Its the takeover keeping the price up, and it is a good price you are being paid for them, just ask the VGL board.
If you want to keep them, sell out to Commander and then buy their shares (CDR) in the combined entity, which will only go up on successful takeover.

Win, Win situation. Synergies and economies of scale for both.


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## Narkov (29 March 2006)

*Re: VGL - Volante Group Limited*

I reckon there has been a huge level of incompetance displayed by the VGL board. They have NFI about the status of the company and will lie through their teeth with bull**** "independant" reports. 

It's boardering on fraud what they did with the "independant" SP recommendation and then turn around and accept a lower offer. Either way...theres no way VGL will survive with it's current board and management team.


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## Narkov (4 April 2006)

*Re: VGL - Volante Group Limited*

Is there a bit of an arbitrage opportunity for low income tax bracket traders?

Assumptions: CDR fulfils all requirements and completes the takeover

Buy at $1.115.

Get $1.05 cash + $0.08 dividend + $0.065 capital loss.

On 15% MTR you will get $0.017 franking rebate so a total of $1.147 per share and a capital loss to offset against a gain.

Anything wrong with my sums here? I spose the biggest risk is it CDR don't get their 90%.


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## Nicks (5 April 2006)

*Re: VGL - Volante Group Limited*

So buy CDR - they will get it.

Hope you handed over your shares.....b uy yourself some CDR with the money, if youd done this when I said youd be very happy by now. Still though, CDR has been upward of 2.60 before without VGL, so I reckon its a $3 stock short term, higher long term.


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## Cliff (5 April 2006)

*Re: VGL - Volante Group Limited*



			
				mojo said:
			
		

> can someone who knows, tell me what happens if we dont sell our vgl to commander?




I'm not 100% certain, but this is my understanding of how it works.

CDR's offer goes until Friday 7 Apr.  If they receive 50% or more acceptances by then they have to continue the offer for another 2 weeks.

At the moment they have about 47% acceptances so it seems a safe bet they will get over 50% by Friday 7.

The question then is whether they will get over 90% in the remaining 2 weeks.  If they do, either the remaining shareholders will remain as minority shareholders, or CDR can compulsorily acquire the remaining stock at the same price they offered the accepting shareholders.  If they don't, they have the option of walking away from the bid or making a higher offer.

My guess, and it is purely a guess, is that they won't make the 90%.  Acceptances don't seem to have been flooding in, and there has been a lot of stock traded on the market in the last few weeks at a slight discount to the offer price.  Either someone is buying in order to resell to CDR, or they are building a blocking stake.  My guess is that it is the latter.

If the bid fails, CDR have said they will walk away, and my guess is that they will.  As another poster has said, this will leave the Board in a difficult position as their shareholderw will have shown more faith in the future of the company than they have!!  I would guess that control of the Board would change in this circumstance.

Anyway, it is an interesting situation, and it will be interesting to see how it all plays out.

I have shares in VGL but not in CDR.


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## Narkov (6 April 2006)

*Re: VGL - Volante Group Limited*



			
				Nicks said:
			
		

> So buy CDR - they will get it.
> 
> Hope you handed over your shares.....b uy yourself some CDR with the money, if youd done this when I said youd be very happy by now. Still though, CDR has been upward of 2.60 before without VGL, so I reckon its a $3 stock short term, higher long term.




You don't get any money from CDR until after successful expiry of the offer.


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## Nicks (7 April 2006)

*Re: VGL - Volante Group Limited*

Managing Director Ian Penman has offloaded his 250000 shares and accepted the CDR offer. Robin Crawford has 4.6m shares is suggested by AFR that he may have accepted in the facility, which is anonymous. CDR currently has reached a total of about 75% in VGL. I think they will get there.

Market thinks so too going by CDR share price.


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