Forum Archive Index - September 2000

["charlie brown" <gordy_gecko@hotmail.com>]

Chris

I see the deal between Jump and WNC like this:

1) Jump don't want to have anything to do with WNC/and or its mangement so 
hence WNC have really bowed to Jump's wishes ($) and separated Radionet from 
their other businesses;

2) Jump will pay $10 million for their 28% stake (the rest will be in a 
sweat for equity deal).  WNC shareholders get 60% of Radionet and WNC 12%. 
Hence, difficult to value;

3) The Mt Conqueror deal was always a shambles.  When Jump took the reins 
(or was negotiating to) they did not want to take on any of WNC's former 
deals (fair enough I'd say);

4) I don't think we'll see Jump bid in the auction but rather they'll strike 
up an alliance with someone like Vodafone;

5) A move to Aust. will follow (see 4 above); and

5) With the $ they've got spare and also the brains trust on hand they'll 
end up giving Walker Wireless a beating in the end.

Charles

As an aside - interesting to note Todd's tie up in both Jump and Walker 
Wireless.



>From: Chris <cd@ak.planet.gen.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: "sharechat" <sharechat@sharechat.co.nz>
>Subject: Re: [sharechat] WNC
>Date: Mon, 18 Sep 2000 13:01:54 +1200
>
>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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