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MTU - M2 Group

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Re: MTU - M2 Telecommunications Group

Thanks Notting, basically a bit of good old fashioned profit taking and of course the market being the market!
 
Re: MTU - M2 Telecommunications Group

ubtheboss said:
This company has had some incredible growth in the last 2 years. It seems to be meeting a little bit of resistance at the current sp. Anyone else following this?
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I own it. I think it's a stellar stock. It reports on 27 February. I expect it will slightly exceed estimates. The entire telco sector has shone this reporting season unlike some of the mining services and IT services companies that I own. Anyone else share this view?
 
Re: MTU - M2 Telecommunications Group

A very generous renounceable rights offer made public today: $2.66 a share for every four shares presently held. Any one want to sell me their rights? ;)
 
Re: MTU - M2 Telecommunications Group

Does anybody know what the latest is in regard to determining the CGT base if selling your entitlement?
 
Re: MTU - M2 Telecommunications Group

Ahh I really wanted to get into MTU but the entry price seems a little high at the moment. Any chance I could buy someone's rights?
 
Re: MTU - M2 Telecommunications Group

The rights will be traded, Herzy. You should have no trouble picking up some on market.

Regards,

Kenny


The key dates for the Entitlement Offer are:
Entitlement Offer announced Monday, 16 April 2012
Ex date and rights trading commences Wednesday, 18 April 2012
Record date for Entitlement Offer 7pm on Tuesday, 24 April 2012
Dispatch of Offer Booklet to Eligible Shareholders Friday, 27 April 2012
Rights trading ends 4pm on Friday, 4 May 2012
Entitlement Offer closes 5pm Friday, 11 May 2012
M2 notifies ASX of under subscriptions Wednesday, 16 May 2012
Issue of New Shares under the Entitlement Offer Monday, 21 May 2012
Dispatch of holding statements Monday, 21 May 2012
Trading of New Shares issued under the Entitlement Offer
expected to commence on ASX
Tuesday, 22 May 2012
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Re: MTU - M2 Telecommunications Group

Does anyone have any view on the Primus acquisition? It looks pretty good to me. But of course the risk is always whether the acquiring entity is paying to much for the acquired entity. That doesn't seem to be the case here and MTU has a history of making sensible acquisitions but I'd welcome any views people have who may have run the numbers.
 
Re: MTU - M2 Telecommunications Group

I've only had a few minutes to look at them (will have a better look after work), but I was fairly impressed with the numbers I saw.
 
Re: MTU - M2 Telecommunications Group

Nutmeg said:
Does anyone have any view on the Primus acquisition?
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I've been looking to purchase MTU for a few years and never pulled the trigger, today I am happy that I never purchased.

I haven't looked into the figures to judge whether they paid a fair price for Primus. Strategically the acquisition made sense.

However - the $82.1 Million entitlement offer makes it a dud deal IMO.

Just over 31 Million new shares (approx 25%) - this instantly dilutes your holding... not only that, the offer the entitlement at a 23% discount to its Friday share price! Current holders should grab a hold of there ankles and brace for impact. Management should have aimed for at least the share price at close not a share price that has a good discount on it.

EPS has had a descent run over the last few years

2008 - $0.07
2009 - $0.09
2010 - $0.14
2011 - $0.22

Now I am concerned how this will tract over the next five years…. Time will tell whether I am right or wrong, but if Warren Buffett struggles to find value in acquisitions through issuing shares I don’t think MTU can find the value in it either.

On a side note - I've only been watching this company since 2008 - if this acqusition strategy has been used in the past I would like to know how successful it was - partciularly if the acquisition was made 5+ years ago
 
Re: MTU - M2 Telecommunications Group

clinta44 said:
I've been looking to purchase MTU for a few years and never pulled the trigger, today I am happy that I never purchased.

I haven't looked into the figures to judge whether they paid a fair price for Primus. Strategically the acquisition made sense.

However - the $82.1 Million entitlement offer makes it a dud deal IMO.

Just over 31 Million new shares (approx 25%) - this instantly dilutes your holding... not only that, the offer the entitlement at a 23% discount to its Friday share price! Current holders should grab a hold of there ankles and brace for impact. Management should have aimed for at least the share price at close not a share price that has a good discount on it.

EPS has had a descent run over the last few years

2008 - $0.07
2009 - $0.09
2010 - $0.14
2011 - $0.22

Now I am concerned how this will tract over the next five years…. Time will tell whether I am right or wrong, but if Warren Buffett struggles to find value in acquisitions through issuing shares I don’t think MTU can find the value in it either.

On a side note - I've only been watching this company since 2008 - if this acqusition strategy has been used in the past I would like to know how successful it was - partciularly if the acquisition was made 5+ years ago
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It’s a renounceable rights offer. It is not diluting anybody. It is forcing shareholders to stump up or alternatively sell their entitlements if they are happy to dilute themselves.

Whether the acquisition makes sense is the big question.

Some of the current selling could be people freeing funds to take up entitlement.
 
Re: MTU - M2 Telecommunications Group

Are there ASF members who have decided whether or not to take up this entitlement or not?

I hold MTU, was away today and only just saw this announcement.
 
Re: MTU - M2 Telecommunications Group

craft said:
It’s a renounceable rights offer. It is not diluting anybody. It is forcing shareholders to stump up or alternatively sell their entitlements if they are happy to dilute themselves.

Whether the acquisition makes sense is the big question.

Some of the current selling could be people freeing funds to take up entitlement.
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Could you please explain this? (Genuine question from a newbie)
 
Re: MTU - M2 Telecommunications Group

Given MTU has a good record of buying businesses I think I will take up the offer in my super and personal accounts.

I have a particular interest is seeing the numbers from the data centers and metro fibre rings.
 
Re: MTU - M2 Telecommunications Group

herzy said:
Could you please explain this? (Genuine question from a newbie)
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Maybe not.

Renounceable entitlement offers don’t dilute shareholders because shareholders have the chance to participate in proportion to their current holdings.

There is no shares being sold to the vendors or offered to institutional investors via placement etc.

A current shareholder may be diluted, but only if they sell their entitlements for which they will receive compensation or fail to take any action at all.

I don’t see how people think a renounceable entitlement offer is dilution so I am probably not answering your question at all – If you give me something specific, I will clarify.
 
Re: MTU - M2 Telecommunications Group

Muschu said:
Are there ASF members who have decided whether or not to take up this entitlement or not?

I hold MTU, was away today and only just saw this announcement.
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I am tending towards selling my rights. Not entily sure that I want to be adding at $2.66 plus entitlement price. need to consider what price the entitlement trades at before making final decision.

My decison will be as much to do with personal position as it is to do with the company
 
Re: MTU - M2 Telecommunications Group

craft said:
Does anybody know what the latest is in regard to determining the CGT base if selling your entitlement?
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As best as I can determine the CGT base if entitlements are sold will be $0.00. No proportioning of the original cost base needed. The CGT date will be the date of original purchase and discount available is based on those dates.
 
Re: MTU - M2 Telecommunications Group

Nutmeg said:
What's the entitlement price? And how much is it?
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The entitlement or right is to buy 1 share for every 4 owned

Rights trading will commence Wednesday 18th April through to Friday 4th May.

Rights will trade at approx the difference between the ex right (18 April) share price and $2.66.

Theoretical Ex price based on today’s close of $3.33 is $3.196 so if rights were trading today they should have closed at around 54 cents
 

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