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Blue Star Group gets conditional takeover offer

Monday 2nd July 2012

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Blue Star Group, which last year convinced bond holders to roll over $105 million of debt on more favourable terms after freezing payments, said it has received a conditional offer for the printing company and plans to sell its Rapid labels unit within days.

The company said the offer for the whole company is confidential but indicated it was unlikely to be a high price, given the “well-publicised difficult trading and economic conditions affecting the print industry.” Blue Star has been reviewing all of its operations with a view to a sale in conjunction with major shareholder CHAMP Private Equity of Australia.

Blue Star said it remains in compliance with its debt covenants though “trading conditions remain extremely difficult with continued covenant compliance reliant upon market conditions and the successful implementation of operational initiatives. “

The company’s Sept. 15, 2015, bonds are trading at just $2 per $100 face amount, according to the NZX website. In light of review and potential sale “the board is unsure what value, if any, will attach to the Group’s NZDX listed bonds,” it said today.

Blue Star’s senior lenders have agreed to maintain support during the process, it said.

“There is no guarantee that any offer or approach will complete or, if it does, what value would accrue to the various stakeholders in the group, it said.

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond

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