Member Info for kularatnam

I posted this link just to show the confidence an outside institutional investor has on the future of the combined entity as I felt the fall in the share price since the announcement was overdone. In fact their assessment was made when the share price was in the region of 700p or earning multiples of 20.If majority of the investors felt the deal was bad, then in a company where other than the major shareholder of 28%, rest owning less than 5% - large number with small holdings - selling would have been severe with a higher percentage of the overall holding traded. On the day of announcement ( 29th)only 2.2% traded and upto now not even 10% traded.Though you dont always go by the Broker recommendations, there is unanimity among the brokers in their price forecast - all above 780p other than one at 600p- after the deal was announced. What I like in this business as I have some involvement, is that it is very simple and straight forward . So post acquisition consolidation is much easier than other businesses. Savings proposed are much easier to achieve as they have done at Cineworld. On top of it, have any one thought about the Tax reform proposed in the US - company taxes falling from about 35% - 40% to 20%. In fact I saw in the Regal Annual report the percentage was 40 % and the reduction might give a tax saving of about $55mn.in 2016.This translates the purchase price of $23 per share to a earning multiple of 16 as opposed to the published figure of 21.Considering all the above I feel Regal is really a good acquisition for Cineworld. On pricing the Right Issue I dont think the majority shareholder would like to have too much of a dilution as they would want to maintain the present dividend payout policy. We will have to wait and see. I reckon the share price will gradually increase to pre announcement levels, at least, if not to the broker recommendation levels.

https://news.sky.com/story/singapore-makes-big-screen-debut-with-27bn-cineworld-deal-11157472

http://www.bbc.co.uk/news/uk-42209489

• In the second half of 2015/16 ( between January and June 2016) Finkit recorded a revenue of £500k for what they called “paid testing of the platform”. In their review for 1st Half 2016/17 nothing was mentioned about the follow up – how many clients, results of the tests etc and ironically no revenue was reported. However the company has been spending more on Finkit,recruiting software engineers for their Wales and London offices in 2017. • Actually the candidate profile goes like this “Here at Monitise we’re a team of inventors. Every day, from our office in Soho, we help change the way financial institutions engage with their customers using our ground-breaking digital platform FINkit®. We’re passionate about creating opportunities for financial institutions, our technology partners and the Fintech community, and helping the industry to scale up new secure and compliant innovative solutions for our financial services clients. FINkit® is built using Cloud Native (continuous delivery, DevOps and microservices) and agile design, and is supported by a new and innovative continuous delivery, toolchain and architecture. Our financial services clients use Finkit® to drive innovation using industry partner and new start-up technologies from Fintech. These innovative solutions drive new revenues for our clients and partners and create a better experience for their customers. Are you ambitious? Stuck in the innovation theatre and want to work on the bleeding edge then Software Development Manager” See this also http://www.monitise.com/what-we-think/2017/06/02/wales-from-coal-mining-to-digital-tech-hub/ Extract from the above article: “Led by Anouska Streets, head of engineering at FINkit, and an alumni University of South Wales, FINkit has assembled a world class team of software engineers, who are at any one time building and testing platform services to provide the best support in helping Retail Banks, both in the UK and across the world, with their digital strategy and helping them to truly embrace technology.” Did the above statements not mean that their clients are using FinKit and if so on what terms they use? Or are they following the popular slogans of retailers “ Buy now pay later” but adapted like “ Try and use now, sign and pay later – after Fiserve takeover” Fiserve and Monitise have been working on this deal since January 2017, soon after the partner program was completed. Is Monitise working according to Fiserve agenda and spending money on further developing Finkit to suit Fiserve requirements at the expense of existing Monitise shareholders? In the 1st Half 2016/17 they spent £2.7mn. Dont know how much they would have spent during the second half – a period of discussions with Fiserve.

I reproduce the relevant section in the offer: "12. Offer-related arrangements Confidentiality Agreement Fiserv entered into discussions with Monitise with a view to securing a FINkit® licencing and distribution agreement, potentially combined with a capital investment in Monitise. It was in the context of those discussions that Fiserv and Monitise entered into a confidentiality agreement dated 1 January 2017 (the "Confidentiality Agreement"). It is this Confidentiality Agreement that has continued to bind the parties with respect to their discussions and the information exchanged between them. Pursuant to the terms of the Confidentiality Agreement, Fiserv has undertaken to keep confidential information relating to Monitise and not to disclose it to third parties (other than to permitted disclosees) unless required by law or regulation. These confidentiality obligations shall remain in force for a period of 24 months from the date of the Confidentiality Agreement. The Confidentiality Agreement further includes customary non-solicitation provisions." The formal agreement was signed effective from 1st January 2017. It also looks likes Fiserve had approached Monitise and obviously discussions should have commenced much earlier. Now, shouldn't this information notified to the market at that time not only for the benefit of the shareholders but also for the benefit of any others who are interested to buy Monitise/Finkit. It can be seen that almost six months has taken to Fiserve to figure out the potential/valuation of Monitise. The Directors of Monitise were not transparent and allowed competitors also to have a look at the company. It is also obvious that the SP has been manipulated all these days ( six to seven months) so that it was kept low to get to the ridiculously lowest £70mn mark which appeared 25 % to 30% more than the prices of so called relevant dates. My sincere hope that another buyer emerges with a reasonable price tag. GLA

This company thrives during volatile markets and that is exactly what is happening now. Cant understand the lack of interest.