NB Settlement for the OP Industries acquisition (refer Item 1 below)
is scheduled for 14.5.04 - no details of share issue yet
- perhaps the planned share issue is for something else they
have in mind?
----- Original Message -----
Sent: Monday, May 10, 2004 2:35
PM
Subject: Re: [sharechat] CBD Calling
Cris
HI Allan,
In my (humble, bumbling) opinion .011 is a good
entry point for CBD.
CBD Energy are planning a 50:1
consolidation at some stage but note, they are now profitable and
are also in a major growth (acquisition) phase.
Acquisitions to-date have
been well-aligned, delivering synergies.
CBD are also planning a share issue to fund
acquisitions, but have stated that the issue price will not be less than
.011 per share (see Item 3C below).
Regards,
Cris
Good news all round.
1) Good News: CBD has signed a contract to purchase
O.P. Industries for $7.5M which represents an annual multiple of 2.4 times
EBITDA and 2.7 times EBIT - in the opinion of the board the purchase price
is fair and reasonable - represents a natural extension of current business
activities - greater visibility with major corporates, developers and
builders (NB hence notice of capital raising).
Mr Earl Sakareassean
has agreed to continue in his role as MD of O.P. Industries (for the next 3
years) and has been invited to join the board of CBD as Executive Director.
Mr
Sakareassean - "... Long identified as an area offering growth, CBDE will
provide the products, services and knowledge necessary for O.P. Industries
to credibly approach their existing and prospective clients with energy
saving possibilities. Certainly we are seeing the demand. Tenders are
increasingly seeking energy efficient alternatives ... '
Mr Wayne
Rudland, CBDE's Chief Operating Officer - " ... complementary and overlapped
skills ... far better market coverage ... vertical integration possibilities
... cost advantages - fabrication capability ... "
O.P. Industies
have operations in Melbourne, Sydney, Wangaratta, Albury and Ballarat with
each providing a 24/7 service support capability - 220 employees - major
supplier to hospitals - approved tender for mechanical services to
Safeway/Woolworths, Melbourne Univ, Telstra - significant works for other
corps including Aust Post, The Age, RMIT, Coles/Myer, GMH, Toll Logistics,
Visy, and Pfizer. Top clients over past 5 years (>$20M of business
include Probuild Constructions, Multiplex, Telstra, Leighton Constractors,
and Hooker Cockram. Settlement for the acquisition is scheduled for
14.5.04.
________
2) Re 50:1 share consolidation - More Good
News - Shares acquired/owned by Bay Terrace Pty Ltd and Directors are
subject to the same escrow restrictions as set out in CBD's ASX Announcement
dated 30.6.03, namely voluntary escrow until 30 June
2005.
Broadly, the escrow restrictions preclude directors of
CBD Energy Limited from selling any
shares in the company on market (other than by way of special crossings),
and directors must provide the Chairman with at least 3 business days
written notice of any intention to sell shares off market (including special
crossing).
Holdings Follow:
A) Non-Exec Director: Nick Kephala
- continued to acquire late 2003
- holding 142,480,823
B) Non-Exec
Director: David Hood - has acquired 4,132,333 (direct) & 750,000
(indirect) in total
C) Major Shareholder: Bay Terrace Holdings Pty
Ltd - holding 919,845,892 (45.6% control of voting power)
D) Chief
Financial Officer: Robert Edis - new - nil holding to-date
E)
Non-Exec Chairman - Gerry McGowan (assoc TRW Holdings Pty Ltd) - new - nil
holding to-date
_______
3) Re Share Issue to raise $10M -
Again, Good News:
A) ' ... Directors have agreed that the capital
raised may only be utilised to fund acquisitions that result in positive
earnings per share for the Company as a whole. ... '
B) ' ... It is
envisaged that the funds will be raised by placements to institutions and
sophisticated investor clients of stockbrokers once a proposed acquisition
is nearing completion. The company is only raising funds for acquisition
purposes. ... '
C) ' ... at an issue price of at least 90% of the
weighted average market price of the Company's fully paid ordinary shares
over the preceding 5 trading days before the day on which the issue is made,
and in any event, not less than $0.011 per share. ...
'
________
----- Original Message -----
Sent: Monday, May 10, 2004 1:43
PM
Subject: [sharechat] CBD Calling
Cris
Cris,
I note in several of your posts you say
you're watching CBD for a good entry point. If you would'nt mind
revealing the info, what is your idea of a good entry point??
It
appears that you market is selling off rather sharply today -- I do wish
you would not follow our bad example we set on Friday
here.
Allan
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