Transcorp

[hispy99]

Suburban plugs holes left by NITEL’s collapse

[hispy99]

Late entry of new bidders complicates NITEL's sale

[hispy99]

Nigeria extends Nitel bid deadline again to Feb 15 | News by Country | Reuters

[utuocha]

Transcorp is in love with the 50k magnet and will continue to resist any attempt to separate her from her lover. With a huge share volume, the company's stock - to me - remains overvalued. Only option may be for a reverse split of say 1 for every 1000 shares. This will reduce the volume and increase the yield per share.

[hispy99]

Originally Posted by utuocha

Transcorp is in love with the 50k magnet and will continue to resist any attempt to separate her from her lover. With a huge share volume, the company's stock - to me - remains overvalued. Only option may be for a reverse split of say 1 for every 1000 shares. This will reduce the volume and increase the yield per share.

How is that possible? If companies could increase yield per share from reverse splits, won't they all be doing it?

[ayemco]

Culled from Daily Trust
Nigeria: NITEL Salaries - Liquidator Makes U-Turn
2 February 2010


'The Acting Chief Executive of NITEL, Hajia Zainab also said it was regrettable that the liquidator would accept to defray five months of NITEL staff salaries and months later, he is reneging on what he accepted to do. "Why is he saying so now?" She asked. "If he had said it then, government would probably look elsewhere to get the money," Zainab said.

Is this our same Madam ZainSure it must be congrats to her!!

[hispy99]

NITEL: Globacom, MTN Pre-Qualified for Financial Bid

[utuocha]

Originally Posted by hispy99

How is that possible? If companies could increase yield per share from reverse splits, won't they all be doing it?

In a reverse split, even though the number of outstanding shares are reduced the capitalisation remains the same. The reduction in the number of outstanding shares effectively increases the par value of the company's stock or its earnings per share. In effect, the yield per share becomes more attractive to investors which will naturally lead to a renewed interest in the stock.

[pumping]

Originally Posted by utuocha

In a reverse split, even though the number of outstanding shares are reduced the capitalisation remains the same. The reduction in the number of outstanding shares effectively increases the par value of the company's stock or its earnings per share. In effect, the yield per share becomes more attractive to investors which will naturally lead to a renewed interest in the stock.

Not logical. The yield is only more in absolute terms. For instance if the stock price increased from N2 to N4, then the number of outstanding shares will be halved. If the EPS was 20k per share at N2, it will now be 40k per share at N4. In both cases, this is still 10%. So, though the EPS is higher, the price of the share is also higher in the same proportion. There is really no net effect.

[knightofdelta]

Originally Posted by utuocha

In a reverse split, even though the number of outstanding shares are reduced the capitalisation remains the same. The reduction in the number of outstanding shares effectively increases the par value of the company's stock or its earnings per share. In effect, the yield per share becomes more attractive to investors which will naturally lead to a renewed interest in the stock.

This can only happen if the stock price falls... like Goldlink Insurance.

[hispy99]

Originally Posted by utuocha

In a reverse split, even though the number of outstanding shares are reduced the capitalisation remains the same. The reduction in the number of outstanding shares effectively increases the par value of the company's stock or its earnings per share. In effect, the yield per share becomes more attractive to investors which will naturally lead to a renewed interest in the stock.

You are right in that capitalization is the same. As long as capitalization is the same, then all valuation metircs, (divyld, PE, P/BV, P/CF) are the same and do not change.

[Gengen]

New Generations Telecommunications wins Nitel bid

"A shocking $2.5 billion bid by New Generations Telecommunications Consortium (formerly Telefonica) threw competitors off balance to clinch the preferred bidder slot ....for the acquisition of 75 percent of the moribund national telecom carrier, Nigeria Telecommunication ltd and its mobile arm, MTel."

[ayemco]

Originally Posted by Gengen

New Generations Telecommunications wins Nitel bid

"A shocking $2.5 billion bid by New Generations Telecommunications Consortium (formerly Telefonica) threw competitors off balance to clinch the preferred bidder slot ....for the acquisition of 75 percent of the moribund national telecom carrier, Nigeria Telecommunication ltd and its mobile arm, MTel."

Thats a hell of a lot money for the moribound NITEL. I hope Telefonica will not regret. I also think they have a relationship with Vodaphone. Interesting times ahead.

[ayemco]

Originally Posted by Gengen

New Generations Telecommunications wins Nitel bid

"A shocking $2.5 billion bid by New Generations Telecommunications Consortium (formerly Telefonica) threw competitors off balance to clinch the preferred bidder slot ....for the acquisition of 75 percent of the moribund national telecom carrier, Nigeria Telecommunication ltd and its mobile arm, MTel."

New generation telecoms acquires NITEL

This has more info

[hispy99]

Originally Posted by ayemco

Thats a hell of a lot money for the moribound NITEL. I hope Telefonica will not regret. I also think they have a relationship with Vodaphone. Interesting times ahead.

I don't understand this price tag...

[pesadilla]

Originally Posted by Gengen

New Generations Telecommunications wins Nitel bid

"A shocking $2.5 billion bid by New Generations Telecommunications Consortium (formerly Telefonica) threw competitors off balance to clinch the preferred bidder slot ....for the acquisition of 75 percent of the moribund national telecom carrier, Nigeria Telecommunication ltd and its mobile arm, MTel."

why formerly tefefonica
telefonica is still telefonica and there is nothing new generation about it.
their services is not one of the best but if they are dropping $2.5billion dollars(not naira) for a company like nitel,we will give them a big hug.

[twentypercent]

Originally Posted by ayemco

New generation telecoms acquires NITEL

This has more info

Considering the other bids offered for NITEL, if I were in New Generation's shoes, I will just walk away and let the $957million bid go ahead and buy it. whatever metircs they used in the valuations is evidently different or flawed...if not, I congratulate the BPE this time around.

[pumping]

Originally Posted by twentypercent

Considering the other bids offered for NITEL, if I were in New Generation's shoes, I will just walk away and let the $957million bid go ahead and buy it. whatever metircs they used in the valuations is evidently different or flawed...if not, I congratulate the BPE this time around.

Well, if they have so much money to buy, I expect they will have a lot to compete!!! Other Telecoms companies have to get ready. By the way, frankly, Nitel is worth a lot but then I don't know how much liabilities they have.

[hispy99]

Originally Posted by pumping

Well, if they have so much money to buy, I expect they will have a lot to compete!!! Other Telecoms companies have to get ready. By the way, frankly, Nitel is worth a lot but then I don't know how much liabilities they have.

The way I'll value NITEL = Price of GSM license + Value of SAT3 + Land/Building. I'm not sure I'll pay $2.5B for these assets, but who am I?

[twentypercent]

Originally Posted by pumping

Well, if they have so much money to buy, I expect they will have a lot to compete!!! Other Telecoms companies have to get ready. By the way, frankly, Nitel is worth a lot but then I don't know how much liabilities they have.

I will be surprised if they go ahead and pay the initial $750million. if they do, it will be an indication that the chinese are indeed following an 'at-all-cost' approach to getting in our telecoms market.