Addvalue finally adds value
Disclaimer: i am vested in this stock so will be biased.
Addvalue Technologies, a global developer and manufacturer of mobile satellite terminals is selling a subsidiary, Addvalue Communications for $330 million in cash to a chinese company.
Although the valuation seem to be rich, but for chinese company interested in high technology in satellite communication, price is not their concern. Thus, the question remains whether the deal will go through, particularly whether the supervisory authority of the chinese company will say “aye”.
There is a commission of 15 million to be paid to a broker who is also a shareholder of the company. According to the company announcement, Net asset value will be about 20 usd cents if the deal goes through.Shares are trading at a discount to this value.