Correct. When the Teik Tett deal was announced(2mm earnings) everyone got excited. When high interest costs that couldn't be refinanced killed that deal, all the doomsters could think of was the 2mm lost earnings.
However, what the short sighted failed to realize was that SETO GOT THEIR 10 FRIGGIN MILLION SHARES BACK!!! Moreover, the core seto that existed before TT was still growing nicely. And with the 10 mm shares back, SETO could start looking for other acquisition candidates.
The battery company was acquired with 100,000 shares...that is 1/100th of the cost of TT. Production is expected to hit 50,000 units permonth by summer and quickly expandable to 100,000 units permonth.
On a $10 battery, there margins are on the order of $1.80. That is $90,000 per month for 50K units per month or 1 mm bucks per year.
Now, at 100K units per month, that would be close to 2 MM bucks per year from the battery operation, which is similar to the TT deal.
It ain't bigger than TT now, but it cost 9.9 mm, or 99% fewer shares to acquire.
Moreover, Mr. Pian is intimately connected to the beat up Malaysian tech sector and can certainly come up with a few more value plays and still have a good chunk of the TT shares left over. |
