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[sharechat] FRO Announcement

From: "Ben Dutton" <>
Date: Wed, 28 Jun 2000 15:03:12 +1200

REL: 1436 HRS Frontier Petroleum No Liability


RMG Limited (NZSE: RMG), the largest receivables management company in the
Southern Hemisphere, due to make its share market debut on the ASX and NZSE
ON 29/06/00, today announced 4 major acquisitions and the appointment of 2
prominent business leaders to the company's Board, including the inaugural
CEO of RMG, Paul Cooney, said that the company had signed an option
for the purchase of the prominent West Australian-based debt recovery agency
Laurens & Munns.  Mr Cooney said RMG had also signed agreements to purchase
the NZ-based Kiwi Factors, Northern Receivables and Southern Receivables,
Melbourne-based Total Credit Management Services Pty, for a total
consideration of $A4.8m.
Mr Cooney said that the acquisitions of Laurens & Munns, Northern
and Southern Receivables, and Total Credit Management Services Pty were
subject to the successful completion of due diligence investigations.
"The acquisition of Laurens & Munns will deliver a dominant position in the
WA market, additional portfolios of purchased debt and access to
international relationships.  The Factoring development extends the range of
services available and creates a substantial new business unit," Mr Cooney
Mr Cooney also announced the appointment of the first Chairman of the Board,
Melbourne-based chartered accountant, Tony Hodgson, joint founding partner
Ferrier Hodgson, Australia's largest specialist corporate recovery and
insolvency management group.  Mr Hodgson is also Deputy-Chairman of Tabcorp
Holdings Limited and Chairman of Melbourne Port Corporation.
In addition to the appointment of Mr Hodgson, Mr Cooney said directors were
also pleased to welcome as a non-executive director, Robin Clements, a
commercial lawyer and company director, who, after many years wide
experience, was now a senior consultant with Deacons Lawyers.
Mr Hodgson said he had accepted the appointment as Chairman because his
expertise was closely related to that of the companies who have merged to
form RMG Limited.
RMG has just completed a successful $A25 million capital raising in
and New Zealand to fund the purchase of the 10 Australian and 6 New Zealand
businesses that have merged to form the new company.
Initial market capitalisation of RMG is expected to be approximately $A120
Gross revenue for the combined Australian and New Zealand receivables
is currently estimated to be $A280 million but is expected to reach $A500
million within two years.
RMG has forecasted turnover of $A57.5 million in the year to June, 2001,
earnings before interest and tax for the same period predicted to be $A10.9
Mr Cooney also provided the following details of the planned acquisitions
announced today:
* The New Zealand based Kiwi Factors, New Zealand's oldest factoring
will be acquired for scrip to be issued at A$0.25 on a purchase price of
$NZ1,000,000.  This move into the factoring business will add a new range of
options to RMG's business, and is an entirely complementary fit with the
business's other activities.
* The option agreement proposes that Laurens and Munns, one of Western
Australia's largest and Australia's best known companies in the debt
sector, be acquired for a cash transaction of $A3-3.5 million, subject to
satisfactory completion of due diligence investigations and audit reviews in
August.  The company will provide additional annual revenue estimated at
$A3.5 - $A4 million.
* Northern Receivables and Southern Receivables Ltd.  The acquisition of the
book debts of these companies is being done on a net asset basis with
$NZ500,000 in debt being acquired for its carrying value.  The face value of
debts acquired is $NZ6 million.
* Total Credit Management Services Pty Ltd.  This Melbourne-based
and investigation company will be acquired for cash and shares from 1 July
2000, for a value of $A750,000 subject to a due diligence review.
Mr Cooney said that the integration of the various businesses in the group
had been proceeding smoothly.
"We now have an integration formula which works extremely well and each time
we make an acquisition in the future the transition will become more and
seamless," Mr Cooney said.
Head office functions for the group have now been consolidated at RMG House
at 363 King Street, Melbourne.
Mr Cooney said that traditionally, the receivables management industry had
been fragmented in this region, with a large number of smaller companies,
each offering a limited range of products and services.
The new code for RMG Limited on the Australian and New Zealand stock
exchanges will be RMG.

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