DATANET MERGER WITH WEP SOLUTIONS APPROVED

The reverse merger of Datanet Systems with the Wep Solutions' India's Division of Managed Printing Solutions was approved in the Court Convened Meeting held on 20th Novermber in the office of Wep Solutions in Lavelle Road.
The Confused Shareholders had a good interactive session with the management of Datanet Systems and were satisfied with the answers.
But, at the same time disappointed by the lack of arrangements of snacks/breakfast, espeically considering that the Meeting was held at 9.30 am and went on till 10.30 am.
The Meeting was well attended.

The Shareholders were obviously very confused with the Reduction in their Equity Shares and wanted a Clarification from the Mangement.

The Management had a quiet interesting explation.
This is how one of the Directors explained "Suppose you have 1000 notes of Rs.1 each which amounts to Rs.1000 and you go to Bazaar, you will obviously find it difficult to exchange it for goods.
But, if the Same Rs.1000 you have is not through Rs.1 note but Rs.100 Notes, then it is very easy and convenient to you to trade.
Likewise, we have ensured that your Market Value of Shares will remain same, only the No. of Shares will reduce."

WEP SOLUTIONS REVENUES:
When Srikanth Matrubai queried about the Financials of Wep Solutions' Printing Division, the Wep management gave these figures :

Total Revenue : Rs.11 Crores
Net Profit : Rs.3 Crores.

The Management also clarified that the Company would also invest about 1 Crore shares in the New Company at the SEBI approved price, which means definite premium, which in turn, would boost the Book Value of Datanet Systems.

NAME CHANGE?
When queried if there would be any name change...the Management jokingly said:"Let the Marrige be over first..
then we will see"
When pressed further, he clarified :"Indian tradition is such that the bride adds the surname of the Groom, so it is very obvious that Datanet would add the "WEP" name to itself.

MY FEELING :
The merger with a Profitable Company, Strong Parent Backing, Strong Management, Name Change should do wonders to the Stock.
You could BUY Datanet at the current price of around 5.5 which should give you decent return of at least 50% minimum before the entire process concludes.


Best of luck,
Srikanth Matrubai




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