TheChek News Flow

Meyer Burger [SWX:MBTN] main shareholder Sentis Capital has called for the Swiss solar company to examine strategic options and renew its board, Finanz und Wirtschaft reported in its weekend edition. The Swiss bi-weekly refered to a press release issued by Sentis on 6 December which can be read in full below.

Sentis Capital is held by Petr Kondrashev, according to the SIX Stock exchange homepage.

We have learned from Meyer Burger (SIX Swiss Exchange: MBTN) that ways to commercialize the high technology portfolio, especially for processes and equipment for manufacturing heterojunction (HJT) and tandem solar cells are being evaluated. A Swiss investment bank supports Meyer Burger in this process.

Sentis Capital PCC, as the largest single shareholder of Meyer Burger Technology AG (6.14% stake in share capital), welcomes this approach. Based on its own analyses, Sentis Capital is also convinced that Meyer Burger has a significant competitive advantage in these technologies.

Currently, the difficult market environment prevents leading manufacturers of solar modules from relying on HJT despite clear advantages. The competitive advantage at the level of gross profit for the producer, is around USD 7ct per watt peak, according to statements by Meyer Burger. However, the complete transition of existing production lines involves high investments by the customers with the simultaneous risk that the competitive advantage will disappear relatively quickly, unless the customer negotiates some form of exclusivity with Meyer Burger.

It is important to note that Meyer Burger has the necessary experience for its own production: Since 2013, the company has been producing HJT solar cells in its own mass production facility in Hohenstein-Ernstthal (Germany). Therefore, the question arises why Meyer Burger is not complementing its business model and using the competitive advantage of net USD 7ct per watt peak for itself? Meyer Burger would thus be able to protect its own technology and benefit directly from future improvements in efficiency and throughput of the equipment.

Therefore, Meyer Burger would follow the extremely successful strategy of First Solar (USA), which, by protecting its own technology and the exclusive ties with its equipment manufacturer in Germany, has achieved a leading position in thin-film technology and created value for its shareholders over many years.

As Meyer Burger is currently not in a position to finance a production of at least 5 to 10 GW from its own funds, in our opinion this would have to be done through a capital increase on the capital market or through a strategic partner who is prepared to pay a corresponding premium.

As Meyer Burger's largest single shareholder, we asked the Board of Directors to review all options in a competitive and global process and to choose the best option for the shareholder. There are indications that the Board of Directors is shying away from presenting the capital market with what may be the best option for financing its own production through the capital market.

Due to the extreme dimension of this decision for Meyer Burger, the Board of Directors should not decide on a strategic partnership before informing its own shareholders about the attractiveness and possibilities of an investment. Numerous previous examples prove that partnerships are attractive for the partner companies, but not for the company's own shareholders, who often cannot participate equally in the exploitable potential.

In its press release of 16 October, Meyer Burger already announced that changes would be made at the management and board level. We assume that these adjustments will be made promptly in order to enable the new Board of Directors to credibly present this strategic change to the capital market.

Russian state corporation Deposit Insurance Agency (DIA) wants to speed up the sale of assets of collapsed banks, reported Russian newspaper Vedomosti citing DIA General Director Yury Isaev.

On Monday, 10 December, DIA is opening an office in Moscow for the sale of assets of collapsed banks that went under DIA’s management after the revocation of their licenses. The DIA’s sales office will be consulting potential buyers on the course of sale and the assets that are put up for sale, the item reported citing Isaev.

DIA wants to sell its assets faster and more efficiently, Isaev was quoted as saying.

On Monday, DIA will conduct a first road show, the paper reported. The agency will offer to banks to acquire retail loan portfolio of Russian lender Tatfondbank, for RUB 10bn (USD 150.4m), Isaev stated. The agency has invited 18 banks to the presentation, according to Isaev.

The article reported that DIA is selling the assets of collapsed banks at auctions, including on its own trading platform. More than 27,000 lots worth more than RUB 240bn (USD 3.6bn) in total are currently put up for sale on the torgasv.ru portal, the report said citing DIA’s representative.

Following the press release dated October 25, 2018, the Bouygues Telecom and Keyyo [EPA: ALKEY] employee representative bodies issued their respective opinions on November 8 and 23, 2018 respectively, and unanimously approved the proposed merger.

Philippe Houdouin, Silvere Baudouin, Christophe Sollet, Michel Picot, Eric Saiz, Dominique Roche, as well as Financière Arbevel announce that they have signed the agreements relating to the sale to Bouygues Telecom of all of their 854,316 shares in Keyyo held directly or indirectly, representing 43.6% of the company's share capital, at a price of EUR 34 per share.

Subject to customary conditions, completion of the acquisition is expected before the end of January 2019.

Following this acquisition, Bouygues Telecom will file a voluntary takeover bid at the same price of EUR 34 per share, for all existing Keyyo shares not owned by Bouygues Telecom. In the event that the threshold allowing the realisation of a squeeze-out at the end of the settlement-delivery of the public offer is reached, Bouygues Telecom will request the implementation of a squeeze-out procedure for Keyyo.

The settlement-delivery of the public offering is expected in the first half of 2019. Bouygues Telecom and Keyyo will keep the market informed of any significant change in the transaction.

Link to French-language press release