something not right with sts acquisiton

Something just hasnt seemed right with Neptune since it bought STS and if you look back at the announcements of 23 November 2009 it says in para 2 that 95% of acquisition costs was in cash with balance in shares but then in para 3 it says majority of funding was from extension of NAB banking facilities. Then if you read the annual report for 2010 it says that the 15 million pound owing to NAB was for the acquisition of STS.

So in one announcement it says that NMS virtually paid cash (para 2 of announcement 23 Nov) and now I find NMS owes about $24 Million AUD for the STS acquisition.

Also prior to and just after the STS acquisition there was heaps of positive announcements, then from January 2010 vitually no substantial announcements of contract wins.

You cannot tell me that the subsea sector all went backwards from beginning 2010 and is still ongoing.

Also the unusual trading in NMS shares started in November 2009 just after the STS acquisition and continued on into 2010 from time to time (e.g. June 2010).

You cannot help but think that all this has been planned. It has to be IMO. CLange then employs 4 top regional managers at a huge cost at a time when Neptune must have known they were in financial trouble and should have been reviewing its business structure but yet they let it go until it got so bad that now we find ourselves in this situation.

I think all current shareholders need to be very careful and it really does smell like CLange and his crooks are trying to steal this company from shareholders. Just think about how quickly this has all happened but also think about how easy this could be planned.

I really think that in a few weeks we will get an offer from a Private Equity Firm for 8 cents per share. Shareholders will accept the higher price without question and so they gain the whole business, including the underwater welding technology for only $32 Million. Sure Neptune still owes $57 Million but if they allow this raising to go ahead at 6 cents, the PE firm will still need to pay $102 Million anyway to get the business. Total cost $89 Million to the PE firm in lieu of $102 Million.

Also this business review is the strangest business review I have ever seen. You can pretty well bet they will say they are going to sell the US business. Why not announce that now. Also we all know that at least one ship has to go. Why not announce that now. So that is two assets they could sell now for say $20 Million. So why just go straight for the Equity raising before announceing how they will restructure the business. I know there are costs to restructuring / personnel layoffs etc. They have the extensions from the bank until 2012.

This all just doesnt seem right - something smells fishy and I dont trust any of them. I really do think that us shareholders have to contact ASIC and get them to have a serious look at Neptune. If Neptune does have an alternative motive for all this, it means any company can do it and manipulate the sharemarket.

Dont be surprised if we do not see an offer in coming weeks from a PE firm who will employ CLange to run the business.