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Toddy
13-12-2023, 08:25 AM
Any chance of Forbar or Jarden stuffing this up for shareholders by giving Rak some kind of Sky high valuation from their spreadsheets.
2 days post big news, no further update from the company, so typical. Why don’t they either name the bidder or advise on progress or they’ve asked them to bugger off.
170 pennies must surely be of interest to Robinsons to sail into the sunset ? ;)
Or will this be another STU it over and then RAK off just when serious money gets waved around
How good are the RAK Boardroom Squatters when it comes to inflating the balloon and keeping it aloft at a
respectable height ? ;)
Jan 2022 saw SP north of 200, then things continued deflating badly to a mere 61 pennies by end Nov 2023
winner69
15-12-2023, 11:57 AM
Mike Daniel stirring the Board up ….written to them …seems he’d take the offer
He said “Lorraine, in my lifetime, I have seen too many offers withdrawn due to directors’ delays caused by the need to justify their existence.”
Rakon board urged to gauge major shareholder appetite to sell
https://businessdesk.co.nz/article/markets/rakon-board-urged-to-gauge-major-shareholder-appetite-to-sell
Maybe paywalled
It appears market believes this offer is gone buggers, back to below buck soon.
Fancy going by no news & Mike Daniel making loud noises still producing no muffled stirrings in response - it must be looking like the potential suitor has been told to RAK off and the Ultimate Sale opportunity has disappeared into thin air ;)
How many years of painting pretty glowing pictures & basically only going somewhere very slowly has RAK clocked up now ? ;)
Perhaps word of a potential suitor at 170 pennies has destroyed someone's dreams of letting the Empire slide into the gap and then capable of being picked up very cheaply by existing or other friendly interests ? ;)
Enough to properly stuff the turkey before time in some circles and curry thoughts of dividend spit outs going forward ? ;)
Fair is fair .. it must be annoying to be NZX listed with these sort of petty pestly suitors springing forward out of the woodwork offering more than pocket money, showing up the Board on what things are worth & where they could be going, when the Board & entrenched stakeholders thought they owned the outfit outright and the rest of the suckers along for the ride were just unwanted passengers that could be ditched at will at any sort of price to get rid of them ;)
Update from Rakon re indicative proposal - they have formed a committee to review :)
https://www.nzx.com/announcements/423715
Greekwatchdog
18-12-2023, 01:13 PM
Update from Rakon re indicative proposal - they have formed a committee to review :)
https://www.nzx.com/announcements/423715
Sounds like the last Government. Coffee and cake anyone? Really the Robinsons don't strike me as a group who will flog this off unless they want out.
winner69
18-12-2023, 01:16 PM
Update from Rakon re indicative proposal - they have formed a committee to review :)
https://www.nzx.com/announcements/423715
……..and “promptly progressing a proper process”
Guess they had to put out a statement to pretend they’re doing something, but in reality not really, but like yeah nah.
Doubt anything concrete will eventuate this side of Xmas. Take a break and relook at it Feb/Mar.
Guess they had to put out a statement to pretend they’re doing something, but in reality not really, but like yeah nah.
Doubt anything concrete will eventuate this side of Xmas. Take a break and relook at it Feb/Mar.
I took the announcement as being quite positive, especially that some large holders had expressed support. Although the market took until today to respond. I reckon this thing could pop upwards big time over the holiday break with the usual lower volume.
Discl: Holding
moimoi
19-12-2023, 04:56 PM
and that they have formed a committee to consider...
They could have dismissed the proposal out of hand as opportunistic and undervaluing the company.
Interesting that this is the exact reason given earlier in the year for the requested increase in Director's Fee's.
GLTA.
Pricey
19-12-2023, 10:36 PM
Yes, nice spot regarding the increase in director fees (but in hindsight imagine coming cap in hand for something that *might* happen): "The proposed increase to theprovision for significant additional workand attendances reflects the level of feesthat directors believe may be required tocompensate directors if a significant event ortransaction occurs.
I wonder if one of the "significant shareholders" is Siward Crystal Technology. They would turn their $38m investment into $174m.
This is really when the independent directors should come into their own. Lorraine, Keith and Steve have some involvement with other NZX Listed Companies. Steve was on the Board of Methven when it got taken over and de-listed (for better or worse, seems like the made a hash of it: https://www.nzherald.co.nz/business/brian-gaynor-another-nzx-listing-goes-down-the-gurgler/DPYTT6JVT7RRV5UJSEVURIY6EU/)
Yes, nice spot regarding the increase in director fees (but in hindsight imagine coming cap in hand for something that *might* happen): "The proposed increase to theprovision for significant additional workand attendances reflects the level of feesthat directors believe may be required tocompensate directors if a significant event ortransaction occurs.
I wonder if one of the "significant shareholders" is Siward Crystal Technology. They would turn their $38m investment into $174m.
This is really when the independent directors should come into their own. Lorraine, Keith and Steve have some involvement with other NZX Listed Companies. Steve was on the Board of Methven when it got taken over and de-listed (for better or worse, seems like the made a hash of it: https://www.nzherald.co.nz/business/brian-gaynor-another-nzx-listing-goes-down-the-gurgler/DPYTT6JVT7RRV5UJSEVURIY6EU/)
the problem with too many of the non aligned larger blocks on the Register with different ideas is that might upend
the interests of the founder blocks - if the Board & Outfit continues to show signs of going back to sleep for more of
the same.
Siward looked like the largest stakeholder parcel when I last looked.. Mike Daniel's Warahi was up there too
among various Robinson's parcels
These Offers highlight potential value seen by other parties. The wake up call has been delivered and the Board is on notice going forwards.
ronaldson
21-12-2023, 05:20 PM
RAK surely had value in a geo-political sense that wasn't reflected in the share price prior to this "offer" landing.
And the large facility in India is just ramping up, and sits alongside existing operations in France and the UK - this kind of base is not easily replicated by NZ entities active in any manufacturing industry and this particular industry has growth potential if you can remain on the leading edge. Anyway, to some extent the hard yards seem to have been run here.
RAK could easily be on the radar of more than one potential suitor despite profitability issues just now.
moimoi
21-12-2023, 09:06 PM
absolutely...
Which, among many other reasons, would make it VERY surprising if exclusivity was granted @ $1.70.
absolutely...
Which, among many other reasons, would make it VERY surprising if exclusivity was granted @ $1.70.
The market was only valuing RAK at a third of the current bid, so I would be supportive if exclusivity was granted (ideally with a slight premium on $1.70), given the rollercoaster ride we've had with RAK and management's track record of not capitalising on the opportunities. (arguably).
DISCL: substantial holding
It’s the checkered history of management by Robinsons is what the real issue here. But for that this business is worth far more than bid price. Guess they can’t win them all with lot of pressure from not just retail holders but some big boys too.
Dlownz
10-01-2024, 04:20 PM
Climbing slowly, still waiting for more news.
😊
An 'incomplete and highly conditional offer' doesn't sound like much of an offer at all if you're honest and rational about it.
Either they are willing to cough up $1.70 for the thing or they aren't. What's the problem here?.
Keep a life jacket handy I say.
Dlownz
10-01-2024, 04:57 PM
Yes very true. But when the price is doing this action it's a possible slow and steady accumulater not wanting the price to ramp up too fast while they vaccum up as many shares as possible at the lowest price.
Wait and see but I see it at 1.35 by the end of the week if there is no news
Surely a great thing would attract clean straight forward offers?. Sounds like the offer is subject to conditions which could result in the offer price discounting rather than rising ?. I mean knock it out of the park performances haven't been a hallmark of this co. $1.70 more of a ceiling than a floor. No other offers have appeared as yet against what is clearly a less than convincing bid. Perhaps a clue there?
errornz
10-01-2024, 07:45 PM
Probably been a bit of chat over Christmas between insiders and family and friends that’s causing the slow rise.
errornz
11-01-2024, 03:31 PM
Quite a bit of depth. 480k buy and 170k sell.
Dlownz
18-01-2024, 10:02 AM
https://www.nzx.com/announcements/424952
Back from holiday.
Sideshow Bob
18-01-2024, 10:29 AM
https://www.nzx.com/announcements/424952
Back from holiday.
The news is there is no news......:closed eyes:
JSwan
18-01-2024, 10:58 AM
https://www.nzx.com/announcements/424952
Back from holiday.
That news post was so hard to find on the NZX website, wish we could filter out all those spam NTA announcements
Wai Wai
18-01-2024, 02:40 PM
At least its still alive
Directors will be enjoying the benefit of the recently established slush fund
moimoi
18-01-2024, 11:26 PM
Todays announcement could be construed as laying the groundwork for the eventual non presentation of the "proposal". IMO.
Thats twice now we've been told the independent committee is assessing whether it is in the best interests of shareholders as a whole.
No other parties have put their hat in the ring so far evidently. That would have to have been disclosed.
GLTA
JSwan
19-01-2024, 12:34 AM
Todays announcement could be construed as laying the groundwork for the eventual non presentation of the "proposal". IMO.
Thats twice now we've been told the independent committee is assessing whether it is in the best interests of shareholders as a whole.
No other parties have put their hat in the ring so far evidently. That would have to have been disclosed.
GLTA
What do you mean by “non presentation of the proposal”?
The news is there is no news......:closed eyes:
It's in the best interests of the majority (count) of shareholders, given it was languishing at around the 60-70 cent mark before the current proposal (even if the $1.70 is the ceiling and recognising that there is a long way between the start and finish line of a NBIO).
RAK on a tear today. I'm surprised the market hasn't taken the prospective offer more seriously. Maybe it's starting to or perhaps things are progressing?
ronaldson
07-02-2024, 10:15 PM
RAK on a tear today. I'm surprised the market hasn't taken the prospective offer more seriously. Maybe it's starting to or perhaps things are progressing?
Market is very soft now, with buy-side support lacking until $1.21.
I'm not sure what folk expect really. The 18 January announcement stated the obvious, namely " Rakon will continue to keep shareholders informed by market announcements in accordance with its continuous disclosure obligations but, given the confidentiality agreements it has reached, will not otherwise be providing further comment."
The fact is Rakon has three manufacturing plants (the biggest is newly opened in India), six research and development centres, and sixteen customer support offices worldwide. This surely complicates any due diligence exercise, but the scale and reach of the enterprise is likely to be valuable to an acquiring party. And given the geo-political background as well I believe it is more likely than not that a positive outcome will follow. I even listed RAK as a pick in the 2024 Sharetrader Competition despite the price having already "popped" when the competition commenced.
It's essentially wait and see just now and any share price movements meantime should be ignored. Of course any significant movement absent an announcement could signal a leak of some sort but given the shares on issue are relatively few FMA/NZX ability to monitor trades should give pause for thought.
moimoi
13-02-2024, 09:06 PM
9 weeks on from the tabling of the alleged "indicative offer".
NO meaningful update from the appointed sub committee!!
@ RAK..If there is no update then why don't you inform the non aligned shareholders who don't know as to why there isn't any update.
GLTA.
9 weeks on from the tabling of the alleged "indicative offer".
NO meaningful update from the appointed sub committee!!
@ RAK..If there is no update then why don't you inform the non aligned shareholders who don't know as to why there isn't any update.
GLTA.
Can't have that can we .. the SP might plummet like a stone back down to 70c levels ;)
stoploss
13-02-2024, 10:36 PM
Can't have that can we .. the SP might plummet like a stone back down to 70c levels ;)
These guys been about as bad as FBU , they should take the hint ….
ronaldson
13-02-2024, 10:56 PM
Leanne Lazarus, CEO Heartland Bank, will be a panel member at the Auckland Branch NZSA meeting tomorrow evening and presenting on the Depositor Compensation Scheme, strategy and interest rates.
A current perspective from a smaller market player straddling both sides of the Tasman should be interesting, and the Q and A session should add to the mix.
DownTownJr
16-02-2024, 09:39 PM
I see some Rocketlab holders speculating that they could be the ones who have made a offer and looking to purchase RAK, hopefully we hear something soon.
kiora
16-02-2024, 09:46 PM
What I could find
https://www.reddit.com/r/RKLB/comments/1ag0gsc/is_rklb_set_to_purchase_rakon/
https://businessdesk.co.nz/article/markets/beam-me-up-scotty-rakon-plans-to-focus-on-the-space-market
I expect that after a long period of radio silence and internal wranglings and knashing of teeth that the special working group will eventually announce that the proposed offer is 'not in the best interests of shareholders at this time'...
But 'which' shareholders.. ? 😉
I expect that after a long period of radio silence and internal wranglings and knashing of teeth that the special working group will eventually announce that the proposed offer is 'not in the best interests of shareholders at this time'...
But 'which' shareholders.. ? ��
meanwhile during that period of extensive teethgrinding & chair scraping at RAK Central .. the said SP will likely have drifted back to 70c or lower :)
most of the bunnies watching except for the deaf, sleeping or exceptionally brave will then have been seen to have lost interest & jumped over the fence + run on sensing the excruciating processes coming out of RAK Central ..
no sense in getting pumped up and then waiting around only to get dumped on - is there ? ;)
the smarter bunnies might be more interested in chasing expensive pearls elsewhere :)
ronaldson
28-02-2024, 02:12 PM
And just like that the buy-side volume is gone today. I wonder if word is out?
winner69
28-02-2024, 02:38 PM
And just like that the buy-side volume is gone today. I wonder if word is out?
Deal still on?
Sideshow Bob
28-02-2024, 03:38 PM
Deal still on?
Now almost March - doubt it.
I'm sure RAK would have scared them off a long time ago.....
Now almost March - doubt it.
I'm sure RAK would have scared them off a long time ago.....
Probably couldn't be bothered being put on a long wait, then get told to RAK off ;)
Meanwhile the SP continues to suffer the inevitable fluttering down to ever lower levels ;)
moimoi
28-02-2024, 09:56 PM
Well according to the company's own announcement of 11 December 2023 some shareholders may have been aware of the existence of the "proposal" prior which forced its appearance to be announced.
It would be unsurprising therefore if those same folk are aware of the "proposal" being a no go.
The buy side depth certainly markedly disappeared today.
Perhaps a team bonding weekend strategy retreat @ Hakone Inaba Sanso on the saki led to an impulse emailed "offer".
Possibly now being slow walked back by not responding to the appointed sub committee to save face.
Who knows! The company certainly seems in no mind to provide any worthwhile update to all of its shareholders as to status or even potential timing of an update as to the status of the "proposal".
Worringly for the forthcoming FY2024 results the CE of Nokia (a longstanding RAK customer) last night highlighting @ the mobile world congress that 5G investment by European Mobile telco's is still near nil. (Telecommunications being by far RAK's largest segment)
He stated the 33 odd Euro mobile operators have an average 4m customers each as compared to the US carriers who average 90m each and as such, along with strict pricing regulations, don't have sufficient profitable margins to invest in network renewal despite the growing data loads on networks.
GLTA
Well according to the company's own announcement of 11 December 2023 some shareholders may have been aware of the existence of the "proposal" prior which forced its appearance to be announced.
It would be unsurprising therefore if those same folk are aware of the "proposal" being a no go.
The buy side depth certainly markedly disappeared today.
Perhaps a team bonding weekend strategy retreat @ Hakone Inaba Sanso on the saki led to an impulse emailed "offer".
Possibly now being slow walked back by not responding to the appointed sub committee to save face.
Who knows! The company certainly seems in no mind to provide any worthwhile update to all of its shareholders as to status or even potential timing of an update as to the status of the "proposal".
Worringly for the forthcoming FY2024 results the CE of Nokia (a longstanding RAK customer) last night highlighting @ the mobile world congress that 5G investment by European Mobile telco's is still near nil. (Telecommunications being by far RAK's largest segment)
He stated the 33 odd Euro mobile operators have an average 4m customers each as compared to the US carriers who average 90m each and as such, along with strict pricing regulations, don't have sufficient profitable margins to invest in network renewal despite the growing data loads on networks.
GLTA
So the next announcement could well be underwhelming .. and they sent a potential suitor with worthwhile readies in hand potentially down the road as well ? ;)
And without any reason, the price is back up again, on reasonable vols......
And without any reason, the price is back up again, on reasonable vols......
Its emerged via Street Talk that Skyworks Solutions out of California is the bidder
Here’s the headline in AFR Streettalk, should be pocket change if they’re serious. No wonder RAK board would ask more…
***
Choice bro! Rakon board sits on offer from $25b wireless chip maker
The California-headquartered technology giant is part of the S&P 500 index and has close to 10,000 employees throughout Asia, Europe and North America.
***
ronaldson
29-02-2024, 09:52 PM
Its emerged via Street Talk that Skyworks Solutions out of California is the bidder
Interesting that the AFR is on to it while the local media apparently don't have a clue.
Still, this is a reputable bidder with a swag behind it and RAK is certainly complementary to its business. I asked the "co-pilot" chat bot to comment and the response was food for thought.
I suspect the market move today will be further extended tomorrow as a broader appreciation that this is a credible party takes hold.
Interesting that the AFR is on to it while the local media apparently don't have a clue.
Still, this is a reputable bidder with a swag behind it and RAK is certainly complementary to its business. I asked the "co-pilot" chat bot to comment and the response was food for thought.
I suspect the market move today will be further extended tomorrow as a broader appreciation that this is a credible party takes hold.
Hey come on now - try to be kind .. Most of the Media will be out commiserating with the Boys & Girls from the Hub
over having to find new Day Jobs by middle of the year
Its emerged via Street Talk that Skyworks Solutions out of California is the bidder
Thanks for the update Muse!
Am I naive in thinking that the longer there is no updated announcement, the greater the likelihood of the NBIO progressing - or is it more likely the result of RAK management being notoriously slow and not nimble?
You can be in no doubt the family owners won't want to part with company. The salaries alone must be compelling.
No doubt they are under pressure from a long suffering major owner(s) to sell up, but they way the offer was 'unenthusiasticly' described in annoucements it is highly unlikely to result in anything whatsoever. Suggestions of offers north of $2 are just pie in the sky.
Listed for circa $1.60 in 2006. Selling for under $1.30 18 years later. Go figure..
moimoi
14-03-2024, 12:44 PM
Difficult to know given the Companies long standing de minimus view of continuous disclosure and its obvious and long standing reluctantance to meaningfully communicate with all of its shareholders.
3 months in; it appears the committee has been unable to complete its assessment whether the NBIO "is in the best interests of shareholders as a whole."
Doesn't give a lot of confidence.
Meanwhile, outside the walls of the Mount Wellington cave, the adjacent industry of semi conductors roars ahead in one of the biggest booms of all time...
GLTA.
ronaldson
14-03-2024, 01:01 PM
Lots of articles on the China/Taiwan situation. My view is that as a well-established chip maker with a geographic spread RAK has an intrinsic strategic value not assessed under ordinary valuation methodologies.
So I think a transaction is more likely than not.
Lots of articles on the China/Taiwan situation. My view is that as a well-established chip maker with a geographic spread RAK has an intrinsic strategic value not assessed under ordinary valuation methodologies.
So I think a transaction is more likely than not.
Hey come on now .. the market is also valuing the resident slow moving turtles in the pool as well :)
ronaldson
21-03-2024, 12:40 PM
Hasn't taken long for Mr Market to start further discounting the likelihood of this "offer" developing.
I did note that the original announcement stated " The Board has received communications from significant shareholders indicating their support for the Board to progress the proposal." So it won't be all that easy to simply wave it off. I know the approach was merely indicative and non-binding, but the subsequent announcement indicated the role of the independent Directors was to see "if it can be developed into a transaction to be presented to shareholders", as you would expect.
We are now a further two months on from the latter announcement, and three months since the initial approach. So where do the odds lie here? Or does the current lack of market enthusiasm/support indicate some knowledge as to how it is?
Good question Ronaldson. I dont know the answer. But what i do know is whenever there is a takeover offer on the table i sell into the market straight away if its close enough to the offer price. All it would take is for one offer to fall through and it would probably wipe out gains you would hope to get waiting for that extra 5% or 10% on a lifetime of takeovers.
Aka Eroad.. and maybe Rakon?
Good question Ronaldson. I dont know the answer. But what i do know is whenever there is a takeover offer on the table i sell into the market straight away if its close enough to the offer price. All it would take is for one offer to fall through and it would probably wipe out gains you would hope to get waiting for that extra 5% or 10% on a lifetime of takeovers.
Aka Eroad.. and maybe Rakon?
How long does it take!! I agree, if the NBIO lands in any way, shape or form, the time it's taken to reach an outcome is another reason to exit the management and the stock.
moimoi
21-03-2024, 09:00 PM
There is a business desk article, published in the NZHerald March 18th, entitled "MHM Takeover hailed as win win for all" which references a "takeover offer @ $1.70 received when the MHM shares were trading @ $0.91."
The MHM Chairman, Trevour Burt, is reported as "offering" the following advice for companies weighing up a takeover.
""The key is to communicate if you get an offer, the market gets antsy with you and shareholders get antsy with you if you're not regularly updating them. The challenge with that is yes, you have obligations around disclosure, you've got obligations around confidentiality, et cetera. But thats the art in it.?
RAK appears unable or unwilling to provide any meaningful update 3 months after the alleged "offer".
GLTA
There is a business desk article, published in the NZHerald March 18th, entitled "MHM Takeover hailed as win win for all" which references a "takeover offer @ $1.70 received when the MHM shares were trading @ $0.91."
The MHM Chairman, Trevour Burt, is reported as "offering" the following advice for companies weighing up a takeover.
""The key is to communicate if you get an offer, the market gets antsy with you and shareholders get antsy with you if you're not regularly updating them. The challenge with that is yes, you have obligations around disclosure, you've got obligations around confidentiality, et cetera. But thats the art in it.?
RAK appears unable or unwilling to provide any meaningful update 3 months after the alleged "offer".
GLTA
Hey come on now .. when faced with being made unemployed if they jump one way ,, what's the quietest way
of not telling anyone, staying employed in a huddle, but thumbing noses quietly at a potential suitor ? ;)
It's called looking after shareholder interests .. probably just the ones around the large round table upstairs :)
And no news of progress reaches the table on the next level, so nothing to keep the great unwashed small
holders outside imformed about ..
ronaldson
28-03-2024, 11:44 AM
And still we wait.
On-market pricing rallied briefly to $1.22 a few days ago, but now dying in a hole again.
Family won't want to sell probably.
Wai Wai
29-03-2024, 04:47 PM
From 18/12 update
The board has also received communications from significant shareholders indicating their support for the board to progress the Proposal.
From 18/12 update
The board has also received communications from significant shareholders indicating their support for the board to progress the Proposal.
a mere three months & a couple of weeks holiday later .. and a big fat zero coming from within ;)
Hope their responses to operating the business in changing times is a tad better ;)
One way of telling all the competitors & possible suitors how good the corporate response & business is likely to be .. :)
Incredible that no further information to market now. Talk about lack of faith in board and key stakeholders
Greekwatchdog
10-04-2024, 09:17 AM
Incredible that no further information to market now. Talk about lack of faith in board and key stakeholders
No surprise there to me. Robinsons only care about themselves
xafalcon
10-04-2024, 09:34 AM
No surprise there to me. Robinsons only care about themselves
Nailed it. This hasn't changed in the 15 years I have watched Rakon. robinson interests come first, second, third, forth and so on, right trough to ninety ninth. Shareholdrrs are seen as nothing more than enablers of this philosophy
ronaldson
10-04-2024, 10:15 AM
I would have thought a decision to reject a proposal was an easier exercise and therefore more likely to be prompt/quicker, whereas to firm up an actual offer underpinned by appropriate due diligence would be much more complicated/take an extended timeframe.
So is this worth a gamble at current pricing ($1.18/lower) given the upside would seem significant? And where will the market price go if negotiations are signalled to be discontinued, which is the downside risk?
Anybody feeling brave?
If any global chip player thought RAK was worth anywhere near the touted 'incomplete and subject to xyz' offer of $1.70 they would have rushed in now with a concrete counter. They haven't....
ronaldson
10-04-2024, 11:07 AM
If any global chip player thought RAK was worth anywhere near the touted 'incomplete and subject to xyz' offer of $1.70 they would have rushed in now with a concrete counter. They haven't....
I thought I read somewhere that the US Government is currently massively subsidising the onshoring to USA of Taiwanese chip manufacturing plants, because of the current strategic risks to that jurisdiction. Perhaps that is what is skewing the scrum for RAK?
Joshuatree
10-04-2024, 11:27 AM
Not when it comes to the black hole RobbinGson's! I'm so looking forward to some value accretive ,event,takeover etc happening and redeploying my capital elsewhere.Endless Patience required to releasing that value,holding for now,but I'm not holding my breath
ronaldson
10-04-2024, 02:15 PM
I would have thought a decision to reject a proposal was an easier exercise and therefore more likely to be prompt/quicker, whereas to firm up an actual offer underpinned by appropriate due diligence would be much more complicated/take an extended timeframe.
So is this worth a gamble at current pricing ($1.18/lower) given the upside would seem significant? And where will the market price go if negotiations are signalled to be discontinued, which is the downside risk?
Anybody feeling brave?
OK, I confess. Since posting this I have added another 5k at $1.15 just in case. Not life threatening, and an outcome must be getting closer.
ronaldson
18-04-2024, 12:39 PM
And still we wait! But I am salivating now at where I will be in the 2024 sharetrader competition if this has a positive outcome!
Pricey
21-04-2024, 08:10 PM
It must be alive in some form or another. If it was off the table, then they'd have to disclose that to the market to comply with their continuous disclosure obligations. I can't see how they would not, especially given they have already announced it.
ronaldson
22-04-2024, 09:59 AM
It must be alive in some form or another. If it was off the table, then they'd have to disclose that to the market to comply with their continuous disclosure obligations. I can't see how they would not, especially given they have already announced it.
True.
No real sign from market price action and depth that any info from inside is trickling out either despite the extended timeframe. Maybe that circumstance leans more toward a downside outcome?
Pricey
23-04-2024, 07:35 AM
I think I will email them. Is it also something that the NZSA could help out with? They often advocate for shareholders and this is starting to feel like something we need more traction with ... alternatively, if others send in requests surely they will get the message.
moimoi
23-04-2024, 10:45 PM
Doubt you’ll get a meaningful answer Pricey but let us know how you get on.
Market pricing, both currently and from the outset of the announcement of an NBIO, and the lack of any update 4 months in, make it difficult to allay the feeling that a change of control transaction @ $1.70 just ain’t happening.
GLTA.
Greekwatchdog
24-04-2024, 01:53 PM
This is For Bars update this morning...
We adjust our Rakon (RAK) forecasts to account for prolonged market weakness in its key Telecommunications segment (~55% of FY24E revenue) following negative updates from key global telco players. Nokia (NOK) and Ericsson (ERIC) reported 1Q24 numbers in the last week, with both experiencing notable revenue declines. NOK reported a significant fall in sales, led by a deep contraction in its network infrastructure and mobile networks divisions. Similarly, ERIC experienced a downturn in sales, calling out a slowdown in 5G network deployment in its critical North American market as a key driver. While our FY24 estimates already align with the lower end of RAK's guidance, we reduce our FY25/FY26 estimates as we push out a recovery in Telecommunications. Our blended spot valuation falls -2cps to NZ$0.98, and we await news regarding the potential NZ$1.70 takeover offer.
What's changed?
Earnings: Our underlying EBITDA estimates fall -5% in FY25 and FY26, while NPAT falls -9% and -6% respectively.
Spot valuation: Our blended spot valuation falls -2% to NZ$0.98, with weakness in peer comparables also driving the reduction.
Nokia — 1Q24
NOK 1Q24 showcased a challenging market environment, with net sales falling -20%. Its network infrastructure segment saw revenues drop -26%, while mobile network revenue was down -39%. NOK noted that it had seen improved order intake, providing confidence in a stronger 2H24 that should allow it to achieve its full-year operating profit guidance.
Ericsson — 1Q24 sales remaining weak but the company calls out that inventory levels have stabilised
ERIC reported a -15% year-over-year decline in 1Q24 net sales, dropping from SEK$5.7bn to SEK$4.8bn. The Networks segment saw a sales decrease of -21%. Reflecting lower 5G customer infrastructure investment, sales declined by -17% year-over-year in ERIC's primary global North American market. The company noted that customer inventory levels have now stabilised, and it expected a recovery in the second half of 2024 following recent contract wins. Despite market challenges and cautious customer investment, ERIC anticipates sales stabilisation in the latter half of 2024, supported by a strong pipeline and recent contract wins in North America.
Earnings preview — RAK FY24 result due 29 May 2024, we revise our FY25 and FY26 estimates
RAK is due to report its FY24 result on 29 May 2024. Management has guided to underlying EBITDA in the range of NZ$13m to NZ$19m. Our FY24 estimates have NZ$141.8m in sales (down -21%), underlying EBITDA at the lower end of guidance at NZ$13.9m (down -67%) and reported NPAT of NZ$4.4m (down -81%). We anticipate RAK will update investors about the takeover offer, first announced on 11 December 2023. We cut our FY25 and FY26 revenue estimates by -2% and -3%, respectively, and our underlying EBITDA forecasts by -5% in both years, effectively pushing out the cyclical recovery by ~three months.
moimoi
25-04-2024, 09:42 PM
April 24 (Reuters) - Anglo American PLC AAL.L :
ANGLO AMERICAN :CONFIRMS THAT IT IS HAS RECEIVED AN UNSOLICITED, NON-BINDING AND HIGHLY CONDITIONAL COMBINATION PROPOSAL FROM BHP GROUP LIMITED
ANGLO AMERICAN : THE BOARD IS CURRENTLY REVIEWING THIS PROPOSAL WITH ITS ADVISERS.
ANGLO AMERICAN - BHP PROPOSAL COMPRISES AN ALL-SHARE OFFER FOR ANGLO AMERICAN
ANGLO AMERICAN - BHP PROPOSAL WOULD BE PRECEDED BY SEPARATE DEMERGERS BY CO'S ENTIRE SHAREHOLDINGS IN ANGLO AMERICAN PLATINUM , KUMBA IRON ORE LIMITED
Lets see if the Board of Anglo American takes in excess of 4 months to determine if the proposed transaction is "in the best interests of shareholders as a whole".
AND
Lets see if the Board of Anglo American takes in excess of 4 months to provide an update to their shareholders.
Continuous disclosure obligations and confidentiality agreements will be broadly similar between the 2 proposed transactions not withstanding the differing $$ values...
GLTA.
April 24 (Reuters) - Anglo American PLC AAL.L :
ANGLO AMERICAN :CONFIRMS THAT IT IS HAS RECEIVED AN UNSOLICITED, NON-BINDING AND HIGHLY CONDITIONAL COMBINATION PROPOSAL FROM BHP GROUP LIMITED
ANGLO AMERICAN : THE BOARD IS CURRENTLY REVIEWING THIS PROPOSAL WITH ITS ADVISERS.
ANGLO AMERICAN - BHP PROPOSAL COMPRISES AN ALL-SHARE OFFER FOR ANGLO AMERICAN
ANGLO AMERICAN - BHP PROPOSAL WOULD BE PRECEDED BY SEPARATE DEMERGERS BY CO'S ENTIRE SHAREHOLDINGS IN ANGLO AMERICAN PLATINUM , KUMBA IRON ORE LIMITED
Lets see if the Board of Anglo American takes in excess of 4 months to determine if the proposed transaction is "in the best interests of shareholders as a whole".
AND
Lets see if the Board of Anglo American takes in excess of 4 months to provide an update to their shareholders.
Continuous disclosure obligations and confidentiality agreements will be broadly similar between the 2 proposed transactions not withstanding the differing $$ values...
GLTA.
Hahaha .. VG that about says it all :)
ronaldson
29-04-2024, 01:53 PM
Clearly the market does not believe in this share any more.
While we wait still upon the Committee to update us it seems from the buyside depth that literally no one considers the outcome will be positive.
ronaldson
30-04-2024, 04:12 PM
Further sharp fall today on-market indicates some leakage in knowledge re the proposal under consideration in my view. Maybe info is not as tightly held as the Committee would wish?
This could lead to an enquiry into trading?
Wai Wai
03-05-2024, 02:30 PM
Looks like a couple of big margin calls
winner69
03-05-2024, 02:39 PM
Mike Daniel still grumpy
From BusinessDesk
Daniel complained to the “ultimate market regulator”, the Financial Markets Authority (FMA). The FMA confirmed it had received a complaint.
Daniel had also repeatedly written to Rakon and its chair, Lorraine Witten, asking for it to at least tell Rakon investors whether the talks continued.
Rakon said in an emailed statement that its board was mindful of and paid close attention to its continuous disclosure obligations to release material information to the market in accordance with the listing rules.
“Rakon is committed to keeping shareholders informed in accordance with those obligations but is otherwise subject to confidentiality restrictions.”
Mike Daniel still grumpy
From BusinessDesk
Daniel complained to the “ultimate market regulator”, the Financial Markets Authority (FMA). The FMA confirmed it had received a complaint.
Daniel had also repeatedly written to Rakon and its chair, Lorraine Witten, asking for it to at least tell Rakon investors whether the talks continued.
Rakon said in an emailed statement that its board was mindful of and paid close attention to its continuous disclosure obligations to release material information to the market in accordance with the listing rules.
“Rakon is committed to keeping shareholders informed in accordance with those obligations but is otherwise subject to confidentiality restrictions.”
Good on him - what are Directors' duties again ?
Acting in best interests of the Company & Shareholders (that is all as a collective Group - not some, or a few larger stakeholders)
Time this was investigated along with the Board, Directors etc
Somehow many might wonder if the FMA have the balls & nous to achieve too much other than try to
recover their own court costs and produce Claytons wins.. and along with them stuff all those who have potentially lost out on the other side of the coin
If Directors & senior managers / assistants have breached their duties then maybe time for a class action against those who may or may not have strayed ?
There are probably a large bundle other worthy candidates for similar treatment & class action treatment too :)
It will only take one well won case then threat of red hot poker treatment for others to sort out the others on what they are potentially likely to be lined up for ;)
“Rakon is committed to keeping shareholders informed in accordance with those obligations but is otherwise subject to confidentiality restrictions.”
what have RAK stakeholders seen out of this ?
Alleged Offer price was what ? $1.70 was it or not ? ;)
What was the SP at close today ? - looks like $ 0.94
Looks to most that Stakeholders have to date potentially lost 76c a share over the duration so far :)
How much hidden or other value have RAK's board in charge of running things generated for the Company & Stakeholders in the time while this has been going on ?
None of these shenanigans are new to long term holders, incidentally, variously described by recent entrants as 'disgruntled' and who are convinced times have changed and this time it's real. It isn't. Get used to it.
The family will never give up this business.
IMO the IPO was never real in the first place.
This is no TSMC or Nvidia.
kiora
05-05-2024, 05:40 PM
Can Rakon keep up?
Going,going .......?
https://www.bloomberg.com/features/2024-intel-comeback-chipmaking/?cmpid=BBD050224_MKT&utm_medium=email&utm_source=newsletter&utm_term=240502&utm_campaign=marketsasia#:~:text=The%20company%20h as%20committed%20%2428,next%2Dgeneration%20artific ial%20intelligence%20algorithms.
ronaldson
10-05-2024, 04:33 PM
Going gangbusters in the last hour. Results announcement on 29 May. Might get a speeding ticket if this keeps up.
10c dividend going to be dished up .. or just wishful thinking ? ;)
I mean someting must have been cooking while we didn't even hear the billy being boiled for Boardroom cuppa's & coffees :)
Have you just woken up from a nap?
Have you just woken up from a nap?
Wouldn't have missed much, if I had been napping :)
winner69
13-05-2024, 08:54 AM
Offer still in limbo
Time for another nap
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/RAK/430955/418323.pdf
ronaldson
13-05-2024, 09:28 AM
Yes, and no doubt the real driver for this announcement is/would be the article in the NZ Herald Business pages this morning, where RAK would have almost certainly been approached for comment before publication so aware of the intent.
It does seem a particularly cautious commentery so hard to be optimistic but I agree there will be inherent complexity in achieving an acceptable outcome.
Yes, and no doubt the real driver for this announcement is/would be the article in the NZ Business pages this morning, where RAK would have almost certainly been approached for comment before publication so aware of the intent.
It does seem a particularly cautious commentery so hard to be optimistic but I agree there will be inherent complexity in achieving an acceptable outcome.
The statement "currently working to better understand these matters" is laughable, after all the time that has elapsed without any material update! The advisers will be happy about this dragging out, as the are charging on a T&M basis.
bulltrap
13-05-2024, 10:21 AM
Yes, and no doubt the real driver for this announcement is/would be the article in the NZ Herald Business pages this morning, where RAK would have almost certainly been approached for comment before publication so aware of the intent.
It does seem a particularly cautious commentery so hard to be optimistic but I agree there will be inherent complexity in achieving an acceptable outcome.
I haven't spotted any media coverage, aside from parroting the announcement.
Trying to understand the announcement and why it's marked as Price Sensitive when it doesn't include anything remotely quantifiable.
My naive guess is that the offer is on a circa one-year timeline, with the bidder attempting to lock in a 'high interest rate' discount and then fund the purchase as rates come down. Then there would be conditions on company performance over that time-frame, to ensure they get the sweet end of the deal.
The shoe is now on the other foot, with Rakon trying to push the proposal forward for earlier completion.
Anyway, it's nice to get some reassurance that the deal hasn't fallen through, even if the odds of a good outcome haven't gone up much.
ronaldson
13-05-2024, 10:48 AM
The market so far this morning sees it (the announcement) pessimistically. We will have to wait upon the results announcement on 29 May, already signalled to be a reduction in profitability, to understand more. The current trading circumstance will allow a potential acquirer to drive a hard bargain, so negotiating leverage is not with RAK just now.
must be awfully complex to take six months to move a deck chair - wonder what part of the $1.70 is attached to a rubber band ? ;)
Non binding - the whole deal could waltz out the door never to be seen again, before another movement in the deck chair mysteriously happens :)
Many will remember the STU Offer and how that vaporised, while the new rounds of boardroom coffee were being prepared
Greekwatchdog
13-05-2024, 01:09 PM
must be awfully complex to take six months to move a deck chair - wonder what part of the $1.70 is attached to a rubber band ? ;)
Non binding - the whole deal could waltz out the door never to be seen again, before another movement in the deck chair mysteriously happens :)
Many will remember the STU Offer and how that vaporised, while the new rounds of boardroom coffee were being prepared
Sadly Robinson family have too much control and shareholders are screwed because of it. More of there self interests
Market doesn't like what they are seeing & hearing
RAK currently 0.89 - down 15%
winner69
13-05-2024, 02:45 PM
Market doesn't like what they are seeing & hearing
RAK currently 0.89 - down 15%
Seems chance of being sold gone
So back to how good company performs now
F25 goingbto be great isn’t it?
moimoi
13-05-2024, 03:28 PM
NBIP dead in the water by the looks...recent market pricing has been accurate.
We already know forthcoming FY24 results will be dismal.
Look out below here.
GLTA.
My take is to repeat my earlier opinion that the R's will never give up the family legacy and thus opining that such a 'complexity' - as seen by the potential bidder- makes the transaction problematic to progress ?.
The bidder will want 100% ownership. I don't think that outcome is likely, IMO.
Maybe the bidder should write to shareholders directly and state the basis of the offer?. I've seen that done before. But of course a blocking stake is insurmountable, unless the price is right to remove the blockage. I don't think it will be here.
winner69
13-05-2024, 04:13 PM
Share price 62 cents when offer came
So even if it doesn’t go ahead at least given the share price a boost
I wouldn't be betting on it.. nobody else has rushed in, as yet.
winner69
13-05-2024, 06:56 PM
“One thing [Senna] said that I think fits our situation quite well,” Altug offered, “Is he said: ‘you cannot overtake 15 cars when there’s sunshine, but you can when it’s raining’
Just reminiscing from a while ago
What about if there is some people standing in the roadway?
moimoi
14-05-2024, 07:15 PM
It seems a bizarre world wherein the interests of a non shareholding potential acquirer are exclusively prioritised over the interests of the existing owners of the target company via the legalese of a confidentiality “agreement”. (Invariably not an "agreement" at all, more a non-negotiable requirement of the Johnny comes lately acquirer.)
moimoi
14-05-2024, 07:54 PM
AND
While difficult to decipher anything meaningful in the carefully crafted twaddle of the contracted corporate publicist in the announcement of the 13th May, it seems that the independent committee HAS in fact determined that a potential / possible / diminishing?, offer of $1.70, is worthy of presentation to shareholders, and therefore in the “wider interest of shareholders”.
If they hadn’t come to this conclusion then presumably they wouldn’t be bothering to attempt to understand the alleged matters of complexity.
GLTA.
AND
While difficult to decipher anything meaningful in the carefully crafted twaddle of the contracted corporate publicist in the announcement of the 13th May, it seems that the independent committee HAS in fact determined that a potential / possible / diminishing?, offer of $1.70, is worthy of presentation to shareholders, and therefore in the “wider interest of shareholders”.
If they hadn’t come to this conclusion then presumably they wouldn’t be bothering to attempt to understand the alleged matters of complexity.
GLTA.
Taken them a long time to wake up .. did news of the thud as the SP started bashing it's way through the floorboards finally wake someone up around the round table in the glass tower ? ;)
Perhaps they're not used to receiving unsolicited acquirer love letters out of the blue ? :)
whatsup
16-05-2024, 10:29 AM
Can someone please post the recent $16 mil space contract that RAK has just won ?
percy
16-05-2024, 10:32 AM
Can someone please post the recent $16 mil space contract that RAK has just won ?
https://www.nzx.com/announcements/431144
15/5/2024, 1:42 pm MKTUPDTE
Rakon awarded $17M satellite subsystem contract
15 May 2024
- Rakon’s largest space contract win. Worth up to NZD$17 million over three years, with the potential for a substantial extension thereafter
- Contract represents over NZD$3 million of revenue in FY25
- Contract win makes Rakon a top global supplier of space subsystems products
Rakon Limited (NZX:RAK), a leading manufacturer of frequency control and timing solutions, today announced it has won a contract, worth up to NZD$17 million over 3 years, to supply its industry-leading space subsystems for a new Low Earth Orbit (LEO) satellite constellation.
Rakon was awarded the contract by a global leader in communications satellites.
Rakon will supply its Master Reference Oscillator (MRO) subsystems for the satellite constellation, starting in FY26 and running for an initial period of 3 years, with the potential for a substantial extension thereafter. The contract will provide over NZD$3 million of revenue for Rakon in FY25.
The MROs provide highly accurate and stable frequency references, and precision timing that enable satellite communications and synchronisation. Rakon’s ultra-stable oscillator technology also delivers industry-leading reliability and timing holdover (ability to maintain uninterrupted frequency stability and time, during periods when a GPS signal may be unavailable).
Rakon CEO, Sinan Altug, says the company is incredibly proud to announce its largest space contract win which is a direct result of Rakon’s strategic push into subsystems for the fast growing LEO constellation and commercial satellite systems (NewSpace) market.
“We are pleased to be contributing our world-leading oscillator and space subsystem technology, and decades-long space heritage to this exciting new constellation with a well-respected industry leader,” says Altug.
“This contract win is a significant development for our space business and tangible confirmation that our strategy and investments to become a key supplier in this rapidly growing ecosystem are delivering results. We continue to target strategic high level contracts in this sector and are confident that our latest products and technology have put Rakon in a strong position to deliver future wins.”
At the FY24 half-year results Rakon reported seeing the highest ever order book for its space business. The company expects this growth to continue as it focuses on diversifying its product offering and increasing market share.
The contract win puts Rakon ahead of schedule in achieving its three-year growth strategy milestone of becoming a top-3 supplier for its NewSpace subsystem products. It is also on track to double its serviceable addressable market for NewSpace, in the next 5 years, largely driven by demand for its subsystem products.
Rakon has recently released several new products for its NewSpace portfolio, including new GNSS (Global Navigation Satellite System) receivers, MROs, and ultra-stable oscillators.
Rakon is also preparing to launch a new semiconductor chip designed for its space oscillator products and will provide an update soon.
Rakon FY2024 Results Announcement
Rakon will announce its results for the year ended 31 March 2024 on Wednesday 29 May 2024. The Results Announcement will be followed by an online Financial Results and Business Update, scheduled to start at 11.00am NZST. To join the live broadcast online please pre-register using this Registration link.
ENDS
Wai Wai
04-06-2024, 07:23 PM
From Business desk the only news outlet bothering to dial in
Seems a tad cheap with a market cap less than $200m
Don’t mention Nvidia Throughout Rakon’s investor call on Wednesday after the result release, Altug was repeatedly prompted to name who exactly it was working with on artificial intelligence (AI). They all wanted to hear one name: AI superpower Nvidia. Artificial intelligence, along with space, were the sectors Rakon and Altug were most positive about when reporting its results. It said on Wednesday it was working with leading players in AI hardware to enable the next-generation platforms for new "AI factory" datacentres. Rakon launched its next-generation Niku semiconductor chip in October 2023 and its MercuryX product range for AI and cloud datacentres early this year. It said its growing AI computing hardware product portfolio was already contributing to revenue and was projected to provide additional design wins, collaborations and revenue growth within the next 12 months. Rakon announced those AI products in January and said the MercuryX Integrated Circuit - Oven Controlled Crystal Oscillator product range combined its in-house designed Mercury+ semiconductor chip with the company’s groundbreaking XMEMS quartz crystal resonators. “This fusion of proprietary Rakon technologies is setting new industry benchmarks for unparalleled performance in an ultra-compact design and enables market-leading products in the smallest possible package.” Altug said Rakon could not name who its AI customers were, and was prohibited from doing so. He said its customers were protecting their own competitive advantage in not revealing the use of Rakon’s products. “They keep it tight and confidential, and there is that paranoia. I think it is very valid for all of the AI ecosystem.”
Investors have been fed this sort of stuff for years and years. And years.
What story is the market telling ?
Investors have been fed this sort of stuff for years and years. And years.
What story is the market telling ?
Something fusing in the Boardroom & circuits to outside world appear to be intermittently on the blink when convenient ? ;)
the circuits to progressively let the air out of the tyres on NZX appear to be working just fine :)
moimoi
05-06-2024, 03:39 PM
From Business desk the only news outlet bothering to dial in
Seems a tad cheap with a market cap less than $200m
Don’t mention Nvidia Throughout Rakon’s investor call on Wednesday after the result release, Altug was repeatedly prompted to name who exactly it was working with on artificial intelligence (AI). They all wanted to hear one name: AI superpower Nvidia. Artificial intelligence, along with space, were the sectors Rakon and Altug were most positive about when reporting its results. It said on Wednesday it was working with leading players in AI hardware to enable the next-generation platforms for new "AI factory" datacentres. Rakon launched its next-generation Niku semiconductor chip in October 2023 and its MercuryX product range for AI and cloud datacentres early this year. It said its growing AI computing hardware product portfolio was already contributing to revenue and was projected to provide additional design wins, collaborations and revenue growth within the next 12 months. Rakon announced those AI products in January and said the MercuryX Integrated Circuit - Oven Controlled Crystal Oscillator product range combined its in-house designed Mercury+ semiconductor chip with the company’s groundbreaking XMEMS quartz crystal resonators. “This fusion of proprietary Rakon technologies is setting new industry benchmarks for unparalleled performance in an ultra-compact design and enables market-leading products in the smallest possible package.” Altug said Rakon could not name who its AI customers were, and was prohibited from doing so. He said its customers were protecting their own competitive advantage in not revealing the use of Rakon’s products. “They keep it tight and confidential, and there is that paranoia. I think it is very valid for all of the AI ecosystem.”
It might seem cheap if it had some meaningful link to the explosive AI buildout. Microsoft reported to be spending US$50B on it this calendar year alone.
Except in response to a question on the call relating to the likelyhood of NIKU and MERCURY revenue replacing the recent significant declines in Telecommunications Sector revenue Sinan evidently replied that the current revenue from these 2 products was small.
And, more tellingly, that the primary use case currently was RAk itself as they are feeding these 2 products into their Telecommunications Platforms with the aim of getting ahead of their competition in the Telecommunications space.
ie: Seemingly then not a beneficiary of the datacentre / AI halo currently and the impression given that they relate more to future Telecommunications revenue. The market appears to be pricing RAK accordingly.
Missed its lowered EBITDA forecast and only managed to report a NPAT due to applying tax losses.
As SPC points out...RAK has seemingly been on the brink of good things for like a decade.
“This fusion of proprietary Rakon technologies is setting new industry benchmarks for unparalleled performance in an ultra-compact design and enables market-leading products in the smallest possible package.” Altug said.
Great!! Amazing!! and beautiful Tech!! But when does that translate to returns for all shareholders????
Looks uncertain with no profit forecasted (no guidance), no dividend, next to no institutional shareholder support / interest, new NZ$25M debt facility to fund further capex. And a NBIO that looks DOA.
Wai Wai: How much longer you gonna hang on..?
GLTA.
kiora
05-06-2024, 08:44 PM
Can Rakon keep up?
Going,going .......?
https://www.bloomberg.com/features/2024-intel-comeback-chipmaking/?cmpid=BBD050224_MKT&utm_medium=email&utm_source=newsletter&utm_term=240502&utm_campaign=marketsasia#:~:text=The%20company%20h as%20committed%20%2428,next%2Dgeneration%20artific ial%20intelligence%20algorithms.
If the telcos can't moneterise 5g then whats in it for Rakon?
Greekwatchdog
19-06-2024, 09:50 AM
Complexities'?? More like Robinsons family refusal to let it go. Poor minor shareholders.
On 18 December 2023, Rakon (NZX:RAK) informed the market that it was undertaking a process to consider the unsolicited, non-binding, indicative proposal (the Proposal) received on 7 December 2023. That Proposal was incomplete and highly conditional, including being subject to strict confidentiality controls. Rakon advises today that, following a period of due diligence, the Proposal will not be progressed further and the process is at an end. The parties were unable to reach a suitable resolution to the potential complexities encountered during due diligence (as announced on 13 May 2024). Given the strict confidentiality restrictions which remain in place, Rakon will not be providing further comment. Rakon Chair, Lorraine Witten, commented: “The Board considered the initial Proposal worthy of being assessed and, with support from its external advisers, undertook a comprehensive process to determine if the Proposal could be developed into a transaction to be presented to shareholders for consideration, and to consider any alternative proposals. While this process is now at an end, the interest shown in our company by this credible party is testament to Rakon’s leading technology, strong business operations and unrelenting commitment to customers. “The longer-term growth fundamentals for Rakon’s core markets remain strong and the opportunities significant, especially within the global space ecosystem and AI hardware sectors, as well as the ongoing evolution of 5G/6G, cloud and edge computing, and autonomous machines and vehicles. Rakon’s board and management remain focused on executing on the company’s growth strategy and delivering against our strategic priorities of technology innovation, core markets, customer partnerships, and flexible, scalable operations.”
Complexities'?? More like Robinsons family refusal to let it go. Poor minor shareholders.
On 18 December 2023, Rakon (NZX:RAK) informed the market that it was undertaking a process to consider the unsolicited, non-binding, indicative proposal (the Proposal) received on 7 December 2023. That Proposal was incomplete and highly conditional, including being subject to strict confidentiality controls. Rakon advises today that, following a period of due diligence, the Proposal will not be progressed further and the process is at an end. The parties were unable to reach a suitable resolution to the potential complexities encountered during due diligence (as announced on 13 May 2024). Given the strict confidentiality restrictions which remain in place, Rakon will not be providing further comment. Rakon Chair, Lorraine Witten, commented: “The Board considered the initial Proposal worthy of being assessed and, with support from its external advisers, undertook a comprehensive process to determine if the Proposal could be developed into a transaction to be presented to shareholders for consideration, and to consider any alternative proposals. While this process is now at an end, the interest shown in our company by this credible party is testament to Rakon’s leading technology, strong business operations and unrelenting commitment to customers. “The longer-term growth fundamentals for Rakon’s core markets remain strong and the opportunities significant, especially within the global space ecosystem and AI hardware sectors, as well as the ongoing evolution of 5G/6G, cloud and edge computing, and autonomous machines and vehicles. Rakon’s board and management remain focused on executing on the company’s growth strategy and delivering against our strategic priorities of technology innovation, core markets, customer partnerships, and flexible, scalable operations.”
this is why you always sell into the proposed takeover. same with ERD. Because the one proposal that falls over more than wipes out the other times you try hold on for another 5-10% gain or so
winner69
19-06-2024, 10:00 AM
Lorraine still doing the sell job …..share price should be over 2 bucks with this outlook
“The longer-term growth fundamentals for Rakon’s core markets remain strong and the opportunities significant, especially within the global space ecosystem and AI hardware sectors, as well as the ongoing evolution of 5G/6G, cloud and edge computing, and autonomous machines and vehicles. Rakon’s board and management remain focused on executing on the company’s growth strategy and delivering against our strategic priorities of technology innovation, core markets, customer partnerships, and flexible, scalable operations.”
Greekwatchdog
19-06-2024, 10:12 AM
Lorraine still doing the sell job …..share price should be over 2 bucks with this outlook
“The longer-term growth fundamentals for Rakon’s core markets remain strong and the opportunities significant, especially within the global space ecosystem and AI hardware sectors, as well as the ongoing evolution of 5G/6G, cloud and edge computing, and autonomous machines and vehicles. Rakon’s board and management remain focused on executing on the company’s growth strategy and delivering against our strategic priorities of technology innovation, core markets, customer partnerships, and flexible, scalable operations.”
And if the suitor who was doing due diligence thought that was going to be a big value add then there would have been no issues. Complexities my arse.
DISC. Not a holder, sold 2 + years ago for handsome profit. I guess I got lucky.
Ah yes, recent punters who hopped on board for the bright new future and who despararged the disgruntled old guard are now getting a taste of the rak medicine.
Buckle up for the long term. And it's going to be long. Disc: exited circa $1.50 some time back. I'm not fooled with this circus.
Lego_Man
19-06-2024, 10:48 AM
Complexities'?? More like Robinsons family refusal to let it go. Poor minor shareholders.
Yep, pretty much this. I bet the terms they were asking for were untenable.
winner69
19-06-2024, 12:07 PM
I expect Mike Daniel will be a bit ‘disappointed’
Mike knows nothing but told the NBR probably related to trade and geopolitical tensions between US and China
winner69
19-06-2024, 12:30 PM
RAK share price 62 cents before the announcement in December …so at that 65 cents now almost back to where it started.
Rawz was right good strategy to sell into the offer and don’t wait for anything to happen
stoploss
19-06-2024, 12:59 PM
RAK share price 62 cents before the announcement in December …so at that 65 cents now almost back to where it started.
Rawz was right good strategy to sell into the offer and don’t wait for anything to happen
61 Cents down 18 % on the day,should be a please explain ...... " we can't help it if we are useless "
https://www.nzherald.co.nz/business/391-million-bid-for-rakon-comes-to-nothing/ITSDRNSFTZAI7H7URTY7ATHJ74/
$391 million bid for Rakon comes to nothing
She said the outlook for Rakon’s longer-term markets were strong and the opportunities significant, especially in the global space and artificial intelligence sectors.
Stronger growth, growth in Share price & stronger Dividend habits on the way - Lorraine .. or is that sort of witting too hard for RAK and it's resident Fish Heads around the Boardroom table to compute ? ;)
You lot have p*ssed the ultimate sale up against the wall, not to forget indulged in dividend suppression strategies hoisted on all stakeholders while continuing to whisper glowing future fluffies on the never never, in turn allowing market expression of any potential real value or gain therein to disappear down the can ;)
winner69
19-06-2024, 04:47 PM
https://www.nzherald.co.nz/business/391-million-bid-for-rakon-comes-to-nothing/ITSDRNSFTZAI7H7URTY7ATHJ74/
$391 million bid for Rakon comes to nothing
Stronger growth, growth in Share price & stronger Dividend habits on the way - Lorraine .. or is that sort of witting too hard for RAK and it's resident Fish Heads around the Boardroom table to compute ? ;)
You lot have p*ssed the ultimate sale up against the wall, not to forget indulged in dividend suppression strategies hoisted on all stakeholders while continuing to whisper glowing future fluffies on the never never, in turn allowing market expression of any potential real value or gain therein to disappear down the can ;)
It’s still worth $150m today ….what’s $250m between friends
It’s still worth $150m today ….what’s $250m between friends
Another set of sharper drums must still be sitting in the cupboard out of sight for when conditions are more favourable, on one undetermined foggy day in the future when not many will be stirring and a deal is to be had to surpass all before it ;)
Wonder if todays announcement abt new contract would spark another round of interest from potential bidder.
Wonder if todays announcement abt new contract would spark another round of interest from potential bidder.
may do
Remember - "Rakon is a world leader in advanced frequency control and timing solutions for communications where speed and reliability are paramount."
At 70c close today - sympathies go out to stakeholders who may feel they have been mounted, ridden over & flattened into the pavement in a precise, timely, advanced manner from above, of recent times ;)
beetills
01-07-2024, 05:30 PM
Former RAKON CFO now with MCK
ronaldson
30-07-2024, 10:06 AM
may do
Remember - "Rakon is a world leader in advanced frequency control and timing solutions for communications where speed and reliability are paramount."
At 70c close today - sympathies go out to stakeholders who may feel they have been mounted, ridden over & flattened into the pavement in a precise, timely, advanced manner from above, of recent times ;)
Above from 27 June. On-market price this morning is 88c. That is quite a lift in % terms in just a month. Clearly a re-rate, and perhaps more bubbling away beneath the surface?
Above from 27 June. On-market price this morning is 88c. That is quite a lift in % terms in just a month. Clearly a re-rate, and perhaps more bubbling away beneath the surface?
Interestingly, about a week ago, their recently appointed CFO resigned with immediate effect. But yes, the share price uplift might be representative of some positive progress.
flyinglizard
22-08-2024, 10:07 PM
https://businessdesk.co.nz/article/markets/rakons-390m-buyout-bid-collapse-sparks-market-watchdog-inquiry
The bidder is Nasdaq-giant Skyworks (SWKS), Apple Supplier.
According to Market Screener on 10 Dec 2023, the offer was NZD$ 420 million
https://www.marketscreener.com/quote/stock/RAKON-LIMITED-6498803/news/Skyworks-Solutions-Inc-made-an-offer-to-acquire-Rakon-Limited-for-NZD-420-million-46102475/
leak? public information since 10 DEC 2023 on market screener website. only one minute google search.... it just popped out
blackcap
23-08-2024, 07:37 AM
https://businessdesk.co.nz/article/markets/rakons-390m-buyout-bid-collapse-sparks-market-watchdog-inquiry
The bidder is Nasdaq-giant Skyworks (SWKS), Apple Supplier.
According to Market Screener on 10 Dec 2023, the offer was NZD$ 420 million
https://www.marketscreener.com/quote/stock/RAKON-LIMITED-6498803/news/Skyworks-Solutions-Inc-made-an-offer-to-acquire-Rakon-Limited-for-NZD-420-million-46102475/
leak? public information since 10 DEC 2023 on market screener website. only one minute google search.... it just popped out
If that is true... the $420m bit, there will be very angry Rakon shareholders methinks.
Current mkt cap is $172m
winner69
23-08-2024, 07:44 AM
If that is true... the $420m bit, there will be very angry Rakon shareholders methinks.
Current mkt cap is $172m
But they’ll say it’s really worth something like $800m
blackcap
23-08-2024, 08:28 AM
But they’ll say it’s really worth something like $800m
They might say that, but with falling revenues, not sure how they can come up with a figure like that.
flyinglizard
23-08-2024, 09:21 AM
If that is true... the $420m bit, there will be very angry Rakon shareholders methinks.
Current mkt cap is $172m
The point is that someone knowing the bidder, price and value on 10th of Dec 2023, one day prior the company announcement, if I am right about this. Market Screener is like US website? The leak maybe from bidder side or the broker? It is the fool that they rejected the offer, but we don't know the conditions.
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