By Nicholas Bryant
Friday 11th August 2000
|Text too small?|
Telecommunications technology company Commsoft, which is 38% owned by Strathmore, is due to list on both the New Zealand and Australian stock exchanges on September 13.
In a complex buyback deal, in which Strathmore will buy 15% of its own shares, existing Strathmore shareholders will get one $A1.10 Commsoft share for every 4.25 Strathmore shares they sell back to the company.
Strathmore announced the buyback three weeks ago and issued a don't sell notice at the time. That announcement irked some investors as it gave no other detail than that it was related to Commsoft's future. While they suspected they would be given some preference to buy shares in Commsoft, they wanted details of the deal and of the company.
Both were forthcoming this week, with a complete prospectus on view at the Commsoft's website Ðwww.commsoftgroup.comð.
The preferential entitlement to Strathmore investors for Commsoft stock comes in the form of a minimum option to subscribe for 500 Commsoft shares at a rate of one share for every 75 Strathmore shares held. New Zealand Funds Management has offered to pay $A0.11 a share for those investors not wishing to exercise their preferential purchasing rights.
Strathmore executive chairman Phil Norman said the preferential entitlement was a tangible way of rewarding Strathmore shareholders for their support. Shareholders on Strathmore's register on August 11 will be able to participate in the entitlement of Commsoft shares. Those on the register on August 18 will be eligible to participate in the buy back.
Commsoft directors, cornerstone shareholders Cullen Investments and Advantage Group, and institutional investor New Zealand Funds Management have agreed to accept the buyback.
No comments yet
MARKET CLOSE: Blue-chip stocks Meridian, A2 lead market lower
NZ dollar rises on Brexit hopes, rate cut reassessment
Three not failing, just needs a new owner - MediaWorks CEO
Major investors back new CBL class action targeting directors
Rip Curl purchase a done deal on Kathmandu proxies alone
Comvita chair Neil Craig eyes the exit once he finds a new CEO
Mercury raises guidance on increased storage, high spot prices
Eroad reports strong 3Q sales growth, eyes ASX listing
MediaWorks puts TV business on the block
NZ dollar benefits as preliminary Brexit deal improves risk appetite