Forum Archive Index - September 2000

[Chris <cd@ak.planet.gen.nz>]

Ian,

What do you make of the just announced Jump/Radionet deal?  It's unclear 
exactly what Jump are paying.  Is it $10m or $20m for 28% interest?  I 
can't see the latter as fair value and struggle to see the former which 
would value Radionet at $35.6m.  It is understandable Jump did not want 
any part of WNC and the issues of asset disposal.

The Herald item lacks detail and is in fact inaccurate when suggesting 
WNC traded at a low of 1c this year and Radionet was purchased for shares 
worth $2.5m.  I don't want to sound pedantic but the Herald could be more 
believable if it did some homework in its' lead story rather than 
regurgitating Jump or WNC PR.

Like you I am still no wiser about WNC's worth.  If it holds 60% of 
Radionet and Jump holds 28% where does the balance go.  Directors in lieu 
of fees at a heavy discount?  The Mt Conqueror deal appears excluded.  
Jump can see the excessive competition over there and would be concerned 
about the excessive cash burn rate I think.  Even here in NZ the 
competition is getting fierce.  Walker have the edge on Radionet at the 
moment from a marketing perspective and until some real figures are 
issued I remain in the dark. 

Chris 


>Just an update - a further 56 million shares have been issued since the 
>Annual Report was issued, according to the Companies Office file. Shares 
>on issue would now total 521 million; with no acquisitions announced 
>publicly during that time, to my knowledge. Disclosed prices are 10 & 11 
>cents per share for issues as small as 500,000 shares. 
>
>How many of these shares have found their way to the market where hapless 
>punters have paid 13.5c to 16c during this period? It would seem one would 
>be silly when buying WNC shares not to go straight to the Company (P.O.Box 
>6264, Dunedin ) & "save a few bob"
>

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