I hope that the Chairman and his wife understand that CAAS has not done well for them and the independent share holders. Earning per share is lagging their peer group $1.15 vs $3.46 ..... P/ E ratio is also lagging at 6.2 vs 16.8........ They need to grow the business and cut down on costs and expenses . Acquiring a new company carries more risks and CAAS' accounting and governance risk is already rated aggressive. I hope they seek the right partner that can complement their strengths and compensate for their weaknesses and reward those of us that have been patient share holders for a long time.
Thanks for your input which I value so much..... I truly believe in this company and I think it is so much undervalued.... the amount of shares they plan to offer is about 3 times the amount of existing shares ( if I read the prospectus correctly). I am concerned about dilution. On the other hand the automotive business look very attractive to North American manufactures and an interested party may surface soon. Look forward to your valuable input. Good luck.
Bob, have you seen the latest share sale prospective that was issued at 5 pm today? It sounds that the big boys at the board have decided to sell some of their share to the public over a period of time. Therefore moving this company more toward a public owned company instead of taking it private as we thought originally. I wonder what would be the impact on share price in light of this exchange of shares , potential growth in sale and increased cash flow
Sar If there was a chance for ALU to do it alone I am sure ALU would've done it. It is obvious to me that the long term survival of ALU was questionable for the French gov and ALU to concede and agree to the terms of the public offering. I assume that employee benefits will be taken care of by NOK and current partnerships will also be handled by NOK . I am not sure if AlU patents was part of the $16 B evaluation.
tbadsha, This is a public tender offer and not a merger. According to the French Law share holders of the ac
quired company will not have the right to vote. If the deal gets approved by NOK share holders and pass all the regulatory requirements, NOk would take over ALU. As a holder of ALU share if you don't exchange your shares you would be squeezed out .
What I am saying is that Combes and ALU board members under the guidance of bankers and french government officials have engineered the deal so that no input or voting from ALU share holders is required. Only NOK share holders would need to vote on this deal. I personally don't like it but this is the way both boards of NOK and ALU have done it and gained the approval of the French government. What we need now is for Combes to come out and be transparent as to what is behind the exclusion of the submarine unit from the deal? What is ALU plan for the sale and proceeds of this unit? Why do they consider this deal to be fair to ALU share holders when many analysts believe that such a deal is rotten to ALU share holders? Hopefully we will have enough share holders voices at the May 5th meeting to get us some answers.
May be Combes is saving the Submarine news as well as other pertinent news to share holders meeting on May 5th as he know he would be facing a hostile crowd. He needs to calm them down and convince him of the value of this pending deal.
Combes has been working very closely with the French Gov. since he took over. He managed to get the Gov to invest in ALU when he floated extra shares in 2014. He concluded that the long term survival of ALU is questionable if it goes it alone. I believe that the following is going to be revealed:
1- The deal was made so attractive to NOK share holders because their vote is essential for the merger to go through.
2- Leadership realized that the deal will look unfair to ALU shareholders and could be subject to lawsuit. To please share holders and the French Gov they decided to leave the Submarine unit out of the deal and then IPO it or spin it out and give the proceeds or shares to Alu share holders.
3- Alu share holders would also see further value increase down the road when the NOK HERE division is divested.
Right now Combes has not commented so much about the deal as he does not want to upset NOK share holders and jeopardize the voting process. But in due time all these hidden issues will come out and shareholders of both NOK and ALU will understand that this deal was fair and it offered the best hopeful scenario for both companies.
The key to the new NOK success will be in the execution of the plan and from what I hear, NOK's CEO would be the right person to lead this merger.
As to the share price , as per Barron's article fair value for now $4.40 US in and I expect it to go up significantly as the merger is implemented successfully. So ALU share holders , don't worry , be happy and there are better days ahead.
From now on ALU share price is tied to NOK share price. Any good news on either side will enhance value for both companies share holders. If NOK sells HERE at good price share holders on either side will benefit. The only part of the deal in favor of ALU shareholders is that the submarine unit of ALU is not included in the deal?( Read this in one of the articles this am)This means that ALU share holders may get an additional bonus if the unit get sold in the 2nd half of 2015. GLTA.