Forum Archive Index - September 2000

["paul" <hyslop@xtra.co.nz>]

To Charlie Brown [ or is it Ian ? ] and Chris,

 

Some facts about the deal

 

The shareholding is as follows,  JUMP [28%] , WNC [12%] , Existing Shareholders [60%].

 

A shareholder who has 1000 shares in Wilson Neill , at the time of the split [ probably mid november ] will be issued 833 in Radionet , his existing shareholding in Wilson Neill is unaffected .

 

The new Radionet board will be made up of 2 Jump directors and 2 from Wilson Neill an independent chairman shall be mutually agreed upon .

 

Radionet head office will be located in Auckland.

 

There will be a shareholder agreement between Jump and WNC that will see neither trade any of these shares on the open market for 18 months , this will in effect remove 40% of the shares in Radionet from the open market.

 

The cash component of the deal is $10,000,000 , the partnerships and strategic alliances that come with Jump including but not limited to Ericsson Communications we believe also will deliver  value in excess of $10,000,000 in value.

 

In a multi divisional company the market tends to place value on the lowest common denominator , in our case this is hospitality , by splitting the company and allowing each division to focus on what it does best should enhance shareholder value .

 

By issuing WNC shareholders shares in Radionet it rather than WNC holding all the shares it allows the shareholders to make the investment decisions , not the company.

 

Wilson Neill has recently opened an office in Auckland , 23 Victoria street east , on the corner of Lorne and Victoria st, our phone number is 09 377 7747 or my mobile is 021 659 977.  I would welcome a call form any shareholder and interested party at any time .

 

Paul  Hyslop

 

Director ;   Wilson Neill Corporation