VTL - Vital Telecommunications (formerly Team Talk)

[tim23]

No divvy lift this time, but steady as - should underpin share price.

[bung5]

When there is a sea of red today it is good to see TTK still going strong. Also a huge dividend next month coming.

[bung5]

NZX listed company TeamTalk Limited announced today that it has entered into
a conditional sale and purchase agreement to buy 100% of BayCity
Communications Limited. BayCity Communications of Timaru is New Zealand's
leading dedicated rural ISP and telecommunications provider principally
through its Farmside operation.

"At our recent AGM in Wellington I advised shareholders that we were looking
at buying another business. Today's announcement outlines our intention,"
TeamTalk's Managing Director David Ware said.

TeamTalk proposes acquiring 100% of Farmside using cash and shares. The
purchase is conditional on TeamTalk shareholder approval. A special meeting
of TeamTalk shareholders will be held in mid-December with settlement planned
shortly thereafter.

"The purchase is an opportunity to grow both businesses by building on what
each does best. TeamTalk brings its wireless
expertise and investment
capital and Farmside brings its satellite business, ISP know how, a rural
focus and consumer marketing capabilities" David Ware said.

"Both TeamTalk and Farmside are strong niche operators in New Zealand's
competitive telecommunications environment."

The upfront purchase price is $31 million with an earn out based on company
performance over the next two financial years. This earn out could raise the
total price paid to $42.05 million. In the 12 months to June 2012, BayCity
had revenue of $25.4 million and EBITDA of $5.8 million.

"TeamTalk is a progressive but cautious business. We have a strong track
record of success based on providing excellent customer satisfaction and
shareholder value," David Ware said. "I'm confident our shareholders will
see value in this acquisition and we look forward to welcoming the Farmside
staff and customers to TeamTalk. We intend to continue to operate the
business from Timaru and expect that it will be very much busines
s as usual
in all respects."

[The Grinch]

Am I missing something here? from 2.48 to 2.80 in the last week... and still some upward pressure. Just the lead up to the vote? Anyone attending and if so could you please post your general impressions etc.

Cheers
Grinch

[The Grinch]

That makes sense with over 60% of their business coming from broadband and the comcoms decision to cut the UBA price to $32.45 per month, effective from Dec. 1, 2014, from the existing $44.98. Thats a 27% reduction of their primary input cost. I also imagine that by the time 2014 rolls around (esp after the merger) far more than 60% of the revenue will come from this area. Would be interesting to see the make up of Farmside though.

I'm a complete newb to this so please feel free to critique - all for free education.

Cheers

[tim23]

Waiting for results of meeting from 4/12/12 on Farmside, it looked a good deal to me.

[The Grinch]

Good to see the aquisition goes ahead. Still upward pressure on the shareprice

[Lizard]

There's something that makes me hang on to the last of my TTK, just to ensure I read the announcements. Heck, percy, they've got all kinds of lingo in there that we don't usually see... I wonder if "we should be dangerous" will catch on?

[percy]

Absolute gem of an announcement.!!
Loved it. Plain language,and to the point!!
I think it would be "dangerous" to sell your shares>!!!!
lol.

[BIRMANBOY]

Some good buying to be had here...hasn't been this low for a long time. Don't really see any major change or reason for it but thankful for the opportunity to add some more to the portfolio.