Well hasn't this turned into a bit of a sh## show. Thank you Mohnish for gracing us with your presence. I do hope you can come to a Australia soon so we can all meet with you face to face and really understand where your head is at, because this forum is certainly no way to do yourself any favours.
I usually avoid posting at all costs but couldn't help interjecting given that Jonkey appears to be tapping out, followed by other shareholders who simply are lapping up all of your words before speaking with Gary or Jeff.
My own personal view here is, the acquisition was lined up and ready to go, and then demonitization happened . This knocked a few people out of the park, including your competitors, as Jonkey commented. Although given TSi has been able to win $15m of debt funding, they must have a few things underway, which is good for all of us, however the equity component in Tsn would be heavily dilutionary at current prices.
The conundrum we find ourselves in now is we have historically been reliant on a 24.89% holding in TSi, which will soon not be the case with what is on the horizon in terms of value accretive acquisitions being lined up for Tsn. Given we have not prioritised the acquisition at the moment (that can change at any time), due to current prices and other factors, I would say Gary would be aiming to get runs on the board in Tsn to build the value and hence go ahead with the TSi acquisition at a less dilutionary impact for all of us shareholders, by way of these new potential acquisitions. At least then we will actually own something 100%. Mohnish, I don't mean to be rude here, but is this something you are a little bit envious of now, given we won't have 100% reliance on TSi?
Isnt a Gary doing the right thing now looking for other opportunities rather than sitting on his hands for TSi to get back to October 2016 levels?
The fact is, I would not want to be paying top dollar for a business that still hasn't recovered back to pre-demonitization levels, in fact we would all be looking for a new board and CEO if this occurred at the 47 million mark, wouldn't we??
I have also held numerous discussions with other holders and it is the case that although transactions are trending back up, the types of transactions 50/50 balance enquiries/withdrawals now. Prior to demonitization we were at roughly 70-80% withdrawals and 20% balance enquiries - Mohnish, can you please confirm this is the case? We actually receive half the revenue of a balance enquiry as opposed to a withdrawal, so I would say this revenue split won't return to normal until all of the cash is completely replaced in India. This isn't far off, given the order for the new 200 rupee notes.
Now I also take it that Mohnish has his own motivations for getting the transaction over the line, not only for the equity split between himself and Deepak (wasn't it 15% of the fully diluted entity??) but perhaps there are sone internal bonuses for him from Cx, given it's actually his relationship that brought in the initial funding, not Tsn.
Mohnish, please confirm is this the case? What are your other motivations?
Someone mentioned earlier where did the 23m of funding go from Cx in exchange for 75%. I believe this would have assisted in growing the ATM base from around 1,00 at the time to 2,200 at circa $15,000 a pop average.
This was prior to Mphasis.
Tigers, you also point out that Mohnish is not across Tsn business objectives and that's right. He is the CEO of TSi, he has nothing to do with Tsn although he is a shareholder in Tsn by way of circa 7m shares, he has no other affiliation. He has nothing to do with the day to day running of Tsn. In strict contrast, Gary has north of 190,000,000 shares.
Tsn is a minorty shareholder in TSi and has (until now) been solely reliant on this minority interest in TSi to get any real business trajectory and announcements to market. If we have 2 or more businesses that we own 100% of, don't you think news flow will be more regular?
Now we have a few stokes in the fire which Tsn will own 100% of, and should help build the equity value of Tsn prior to them commuting to the purchase of TSi.
Don't forget, whatever offers TSi receive from other parties, Tsn has the ability to override it at the same $$$ value, or even cash out.
Whatever the outcome, I have more trust in Gary then I do in Mohnish.
Sorry Mohnish but I mean, whatself respecting CEO comes on here and rants like this? It's pathetic.
Gary is doing the smart thing and being patient, waiting for the right time and price to catch the monkey aka TSi.
Also, every shareholder has access to Gary and Jeff, all you need to do is pick up the phone or email, so do yourselves a favour and speak to Gary or Jeff, although I believe Gary is currently in the USA. Hmmm makes you wonder?
GLTAH
FTTT
TSN Price at posting:
0.9¢ Sentiment: None Disclosure: Held
