SRAM - new owners

[PeterM]

SRAM will, most likely, be South African owned in a few weeks time. Rupert?s (sort of new, sort of family owned) investment company is finalizing to acquire two investment bundled funds of the ?fallen? Lehman Brothers ? from the EU branch and the two funds specialized in owning small to mid sized (cap) companies, which also included SRAM.

Sign of the harsh economical times ? it?s a great bargain and a good deal for Anton. The former EU investment banker/manager of those two Lehman Bros funds works now for Rupert?s company.

 

[fandacious]

I thought the deal was already signed.

 

along with SRAM they get a few other brands, like rockshox

 

[PeterM]

I thought the deal was already signed.

along with SRAM they get a few other brands' date=' like rockshox
[/quote']

 

Agreed in principal, finalizing the details. Not sure which steps have been signed off (MOU, etc) yet.

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[Speed Devil]

Interesting...

 

And when it is South African owned will the price drop in SA or will CRC still be cheaper then buying locally?

[Velouria]

So even though it is owned (albeit indirectly) by a South African company, us Saffas are still going to pay more for SRAM stuff than the people overseas. The irony.

[fandacious]

well, SRAM is manufactured overseas, so why should it be cheaper just becuase a saffa owns it?

[AndreZA]

Interesting...

 

And when it is South African owned will the price drop in SA or will CRC still be cheaper then buying locally?

 

it's still made in the east and payed for in $$$ so nothing will change.

 

 

[Velouria]

 

It is certainly not manufactured in the UK, and yet it is cheaper there.

 

Uncle Rupert could look out for us...

 

Velouria2009-02-04 05:23:17

[gianni]

 

So even though it is owned (albeit indirectly) by a South African company' date=' us Saffas are still going to pay more for SRAM stuff than the people overseas. The irony.

[/quote']

 

?????

 

[PeterM]

So even though it is owned (albeit indirectly) by a South African company' date=' us Saffas are still going to pay more for SRAM stuff than the people overseas. The irony. [/quote']

 

As far as I understand it, the Rupert?s will have direct ownership and generally tend to take an active role in their investments regarding key decisions.

Regarding country specific pricing ? that is normally a management decision and depending on the forex.  

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Maybe now we can ride a Silverback with SRAM ? proudly SA owned and assembled (but not SA manufactured).

[AndreZA]

Maybe now we can ride a Silverback with SRAM ? proudly SA owned and assembled (but not SA manufactured).

 

well, Raleigh has a few Sram models and are assembled in SA.

 

There were rumours that the Ruperts were going to buy a english soccer team and they denied it say in Afrikaans that they are from Stelenbosch (or whatever WP dorpie) and play rugby.

 

 

[porky]

Its immaterial. Been the Investors (financiers) dos not make them the owners any more than been Belgian makes you a pedophile.

 

For them its simply a business transaction, we will finance this operation in return for XYZ per month plus interest.

 

Anyway, my opinion is they will sell SRAM and Rockshox off shortly to a smaller financier or pull the plug, its far too small a business market for the Rembrandt group and way out of their line of expertise which is trade in Wine, Tobacco and various Luxury goods like Cartier.

 

I would imagine, its a small part of the business they are looking to buy up and will just quietly move it off somewhere.

 

 

 

 

porky2009-02-04 08:07:08

[porky]

Maybe now we can ride a Silverback with SRAM ? proudly SA owned and assembled (but not SA manufactured).

 

well' date=' Raleigh has a few Sram models and are assembled in SA.

 

There were rumours that the Ruperts were going to buy a english soccer team and they denied it say in Afrikaans that they are from Stelenbosch (or whatever WP dorpie) and play rugby.

 

 

[/quote']

 

Good for them, but lets be honest, Johan Rupert spends more time in the UK than here, having a house here dosnt mean he lives here.!  

[PeterM]

Its immaterial. Been the Investors (financiers) dos not make them the owners any more than been Belgian makes you a pedophile.

 

For them its simply a business transaction' date=' we will finance this operation in return for XYZ per month plus interest.

 

Anyway, my opinion is they will sell SRAM and Rockshox off shortly to a smaller financier or pull the plug, its far too small a business market for the Rembrandt group and way out of their line of expertise which is trade in Wine, Tobacco and various Luxury goods like Cartier.

 

I would imagine, its a small part of the business they are looking to buy up and will just quietly move it off somewhere.

 

[/quote']

 

Johann Rupert is purchasing it with their new Reinet Investments (= Richmont restructured, sort of) via their Reinet Fund. Rembrandt is not part of it. What they are buying are two parcels of Lehman?s Private Equity Fund (EU parcels). So in typical J. Rupert?s fashion, they are not just the financiers but owners who take partial executive control of it.

Re SRAM ? if it will be sold off or not will purely depend if they see any future value (value growth or enhancement) in SRAM, i.e. is it hot or not.

Methinks, he?ll keep it because the economical upswing is just around the corner and then those luxury producers (SRAM etc) become the real sweet spot.

[porky]

 

Methinks' date=' he?ll keep it because the economical upswing is just around the corner and then those luxury producers (SRAM etc) become the real sweet spot.

[/quote']

 

Maybe, but I cant see it, Bank of America didnt see any future in the investment portfolio from what I understand.Maybe it was also too small for them.?

 

The upswing is just around the corner, ........ well at least you are optimistic, which I like, but from recent talks and discussions, I think there will need to be a few more bail outs of major banks in the USA and the UK before it filters on down, Greenspan is now hinting at two years more before things start to even out again - long time to sit with an underperforming, expensive, foreign investment.

 

Strangely most of his luxury goods have stayed the course though Peter - the fact is folk with the means to buy Cartier etc, are not as affected by the financial situation as others, they will always have money for luxury goods, and consequently these products dont feel the crunch that much.

SRAM on the other hand is not really a luxury product, and I would say they are hurting like most other sports goods manufacturers.

 

Well , lets see, no one really knows but I am betting on him dumping them.

 

[PeterM]

 

Methinks' date=' he?ll keep it because the economical upswing is just around the corner and then those luxury producers (SRAM etc) become the real sweet spot.

[/quote']

 

Maybe, but I cant see it, Bank of America didnt see any future in the investment portfolio from what I understand.Maybe it was also too small for them.?

 

The upswing is just around the corner, ........ Well , lets see, no one really knows but I am betting on him dumping them.

 

 

Reinet is definitely one share to watch. Private Equity Funds tend to develop their investments for 3-5 year and then go to market with them (sell or list them).  

I really think that the economy will start to swing in a measurable way in >6 month time for about 1/3 of the market and sectors. The next 1/3 will take a few years (the golden years of ?sexy banking? are over) and the last 1/3 will never recover do to fundamental and structural changes.

I know so little about SRAM?!?

But I am so proud that a few SA companies are strong and investing when the price is very low. Like a smart cycling breakaway when the lead bunch is totally exhausted and over did it!