ss comments for amex and kpool

Amex and Kpool

I would be interested in your comments on the suggestion by ty.webb on Sharescene that PE has dumped Intevia and that's a signal for us to do liewise as they know more than us. here's an interchange I had with ty.web:

Ty.webb said:

So why did Acument dump Intevia? (not only did they part with the rights to it, they sold all the IP and inventory and "brand recognition" they'd built up over 3 years).

According to the release on its website - "The transaction will enable Acument to focus exclusively on its core mechanical fastening business."

The TZL announcement of November 20 now looks quite suspect. TZL must have known at the time that Acument wanted out, yet they framed it all as a "renegotiaton of the commercialization agreement".

I suppose they didn't want to frighten the horses. This stratgey appears to have worked, because the share price has actually risen. But the bottom line is that TZL's former commercialisation partner (one of the world's largest fastening companies) has walked away.

Hardmano replied:

That's putting a very negative slant on what is a good outcome for TZL. TZL looked at buying all of TFS from Textron but opted out as they didn't want the nuts and bolts divisions. Platinum bought the lot but has very quickly moved to offload the Cherry Business .. for about half of the TFS purchase price. PE are obviously not interested in keeping the TFS business but rather .. as Amex and others have said on HC .. they want to capitalise by on-selling parts for more than the price they paid for the whole.

I agree that their approach with Intevia is somewhat at odds to that though in that they seem to have sold this business cheaply. However with 10% of TZL and the likelihood that they will buy more on-market .. they have good exposure to any upside from commercialisation of Intevia.

Rather than seeing it as PE dumping TZL though .. I would see it as a excellent buy by TZL who have now got all the bits of TFS that they wanted and all they have had to hand over is some scip..nice one!

I guess the proof of the pudding will be in what other deals we see such as acquisitions and particularly sales deals and cash flow, and the speed of progress towards a NASDAQ listing.

ty.webb replied:

Why would Acument buy TZL stock on-market? To increase their exposure to an asset that they've just let go? Maybe this would ring true if Acument had retained some key Intevia staff to assist with on-going contact - but they appear to have wiped the slate clean.

Acument is now left with a minority interest in a rival fastening company - albeit a tiny rival. I can't see that they would wish to retain this interest on their books for any longer than absolutely necessary.

At any rate, I'm now an ex-shareholder. When Acument walked away from Intevia, I followed suit, on the basis that they know more about it than I do.

Hardmano