Qiagen want us to sell them our shares in Cellestis at $3.55.
Our Directors want us to agree to selling our shares to Qiagen at $3.55.
Now, there have been all sorts of arguments about what the real value of Cellestis is. Clearly Qiagen want a bargain. We want the true value of Cellestis recognised.
It is now the 5th of July. That means that Financial Year 2011 has ended. The sales for the year have been made, the profits are booked. And yet, despite several requests, our Company has said that they do not intend to provide to us, the owners of Cellestis, the Financial Year figures before the date at which they are asking us to decide whether to sell or not.
Does that seem reasonable to you?
The excuse that the Company has given for not releasing any figures to us is that they cannot do it in time.
However, many companies are willing to provide profit guidance a month or two before the end of the financial year (Cellestis has even done this in the past). We should be asking just why it is that we are getting nothing about the 2011 financials from our Company. It is material information.
We, the shareholders, have owned this business for the entirety of FY 2011. We deserve to know just how well our Company has performed during our ownership. How do they expect us to make a valid assessment of the offer that Qiagen has made without this information? I am sure that the reluctance to provide this information makes many of us feel uncomfortable.
If the Company truly cannot provide us with the financial results for the completed Financial Year then they should delay the vote on the Scheme until they can.
It would seem to me to be an issue of motives here if the results supported their arguments then maybe we would be able to view them but obviously they dont support their cause
ReplyDeleteMy view is that the company would have prepared three monthly management accounts to 31st. March and can add these to the half year figures to 31st. December. If they haven't prepared monthly accounts for April and May then at least they have the monthly turnovers for those months and now the turnover for June. So having the turnover for the previous three months and applying the g.p. margin obtained to the 31.3.2011 turnover a gross profit for the year can be gauged. Overheads, proportionate to the nine months figures can be calculated to give a reckoning of costs for April, May and June. The result is a pretty reasonable estimate of the year's results - guidance in other words. As owners of the business we are deserving of this information.
ReplyDeletePerhaps a question could be asked in the Q. and A. session on the Webcast on Friday as to why this information isn't available. At least it might make the topic of this non-disclosure of information a little more public.
Mulgoaman