epay malaysia is losing money, page-7

epay malaysia is making money ##The UK and Australian markets in pre paid processing are now mature and Euronet see revenues as being flat in these sectors.##

What does that have to do with Asia ?
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##You are suggesting and indeed validating a point put by myself and Quik.
SKG are paying $42 million for a business which generates "maybe" $2m.##

SKG are paying $28 million for $2 million in profit with a further "possible" $14.5 million if a $6 million profit is achieved 12 months down the track. Your above comment is totally wrong (as usual).
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##All it serves to do it extricate Loh and his 'group' to exit a losing position in SKG.##

LOH can exit right now and lose $9 million or he can float e-pay through SKG and try to restore value, he needs to make the offer sweet enough or the market will not do the deal.
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##LOH effectively gets $42m out of SKG which is a dead company.##

LOH gets $8 million in "cash" and $20 million issued in "shares"...........this would equate to 7X earnings, he will not get any further cash or shares if e-pay doesn't nett over $2 million profit.
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##IF.........Epay Malaysia was the cash cow SKG are suggesting it is.......WHY would LOH get rid of it at all?##
Because he gets to float his company through a back-door listing which is fast and cost effective, and he has the chance to stop the decline in value of his holdings in SKG.
LOH holds roughly 28% of SKG, it makes sense for him to swallow the company.
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##SKG will pony up the $28 million for 60% of a lemon.
LOH has found a way to get his money of SKG and his money out of EPay##

LOH gets $8 million in cash (which is less than his investment in SKG) and he gets the balance in shares.....who will buy these shares if e-pay is a lemon ?
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##IF.....EPay Malaysia was the cash cow as you and SKG suggest......why didn't Euronet buy the remaining 60%?##

Because it wasn't for sale at the time, LOH sold them all of the Australian operation and 40% of the Malasian operation, which suggests that he kept the best and the larger slice for himself.
Euronet bought every piece of e-pay that they could in November 2003, and have since expanded into other countries.
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##You see Brad.......SKG will collapse once the placement is done.
The W Home business is dead........SKG said as much in the latest release.###

It has already been announced that SKG will change their name (re-listing fee of $3 million).
So I agree that SKG will more than likely sell W-home and focus on expanding e-pay.
I think they would "collapse" is a bit dramatical, try the word "restructure".
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##So this means the ONLY income SKG will have is 60% of a doubtful Malaysian business.##

PriceWaterhouseCoopers and the euronet financial comments on page 30 (of the previous report posted) both say you're wrong.
If SKG are to survive and Loh is to protect his initial investment this is the best way forward.
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##Hate to say it Brad.......but you have been had.##

That has crossed my mind, but if that is the case it appears I'm in good company with Simon Loh.
I guess we'll know for sure by December.
I don't think that they would have made this deal if they didn't have the means to pull it off.
This has been in the works for around 6-8 months.
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##You will have to write of your $86k or if you had any brains.......sell at 40c and cop an $46k loss##

I'm not sure how you have worked these figures out but I'll make two points.
(1) These losses would be nothing compared to what you've lost on AFT and QPX, so get of your high horse.
(2) You haven't lost until you've sold.
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##wait any longer and you will be lucky to get the placement price of 20c##

Anything is possible, but I'm confident I'll see my average purchase price again.....and maybe a bit more for pain and suffering ;-)
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