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[sharechat] Frontier article from Sydney Morning Herald


From: timothy carling <tmtcarling@yahoo.com>
Date: Thu, 27 Apr 2000 10:49:31 -0700 (PDT)


Article in this morning's Sydney Morning Herald on the
new Frontier
--------------------------------------------
BUSINESS 
Debt collectors plan united front

By PETER KLINGER in Perth

A group of 16 Australian and New Zealand debt
collection agencies plans to merge and seek a backdoor
listing, creating a group handling a fifth of all debt
collection services in the two countries.

The merger plan will see the creation of RMG, with
annual revenue of $57.5 million, and a sharemarket
capitalisation of $108 million.

The merged group plans to gain a listing on the
Australian Stock Exchange via Frontier Petroleum
which, at its last trade of 25.5c,was valued at $23.1
million.

Shareholders will be asked to approve Frontier
acquiring the assets and business of Receivables
Management and associated companies in Australia and
New Zealand for $100 million. Of that, $80 million
will be satisfied by the issue of 300 million shares.

Once the transaction is complete, Frontier
shareholders' stake will be diluted to 19 per cent,
with 64 per cent controlled by the owners of the
merged debt collector businesses and the remaining 17
per cent will go to investors participating in a $25
million share placement.

The major shareholder in RMG following the
reorganisation, will be Cullen Investments, which is
controlled by New Zealand investor Mr Eric Watson,
with a 27 per cent shareholding.

Mr Watson also has a 9 per cent stake in New Zealand
company Strathmore, which will also emerge as a
shareholder in RMG.

RMG, which will include Pioneer, CSA and Commercial
Debt Collection Service (Atlas and Compass), says it
will compare in size favourably with competitors Data
Advantage and New Zealand-based Baycorp Holdings.

RMG chief executive Mr Paul Cooney said the new
company
would be able to provide an integrated range of
receivables, debt management and credit reporting
services.

                 

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