Strathmore Stake In Giant Australasian Merger
FOR IMMEDIATE RELEASE
Strathmore Takes Stake In
CreditNet Technology To Play Key Role in RMG
AUCKLAND – 27 April 2000 – Internet and technology investment company, Strathmore Group Limited (NZSE: SMR) today announced it had reached agreement to sell its stake in CreditNet International Limited along with other shareholders in CreditNet. The ownership of CreditNet will transfer to a new entity, RMG Limited, which intends to list on the Australian Stock Exchange.
RMG Limited will not only become Australasia’s largest receivables management company, it will be the first in the region to offer an integrated range of receivables, debt management and credit reporting services under a single umbrella.
Clients who have traditionally dealt with several agencies will now be able to obtain a full range of services from the one company. These will include traditional debt recovery and receivables management, credit information services together with database management, debt purchasing, factoring, ledger management as well as complete outsourcing of a company’s receivables function.
“The RMG initiative will significantly change the receivables management business in Australasia. The decision to become part of this transaction fast tracked Strathmore’s original plans with CreditNet,” explains Strathmore’s Executive Chairman Phil Norman.
“CreditNet was experiencing significant growth primarily from its core technologies which were well suited to the emerging on-line environment. RMG intends to continue this approach leveraging CreditNet’s state-of-the-art technology,” continues Norman.
Strathmore will receive script in RMG in return for its shareholding in CreditNet, which stands at 36.3%. “This is a good deal for Strathmore,” says Norman. “The merged organisation will be in a stronger and more competitive position. Our investment will benefit from the partnerships with other companies that RMG enters into to secure and maintain a dominant position in our Asia Pacific region.”
CreditNet is a credit business with offices in Auckland, Wellington, Christchurch, Dunedin as well as a number of regional centres. It provides services to clients in the utility, insurance, automotive and retail sectors through its trading units, which include the well-known Creditmens brand.
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately $NZ 19 million of shareholders’ funds. It targets Internet, e-Commerce and information technology companies with potential to deliver accelerated growth in shareholder value by competing in global markets. It provides strategic advice, capital support, operational assistance, industry expertise and a network of relationships to assist technology companies to migrate internally.
For further information, please call:
Phil Norman, Executive Chairman, Strathmore Group
Phone +64 21 667 210, Email email@example.com
Senior Account Manager, Botica Conroy & Associates
Phone +64 9 303 3862, Email firstname.lastname@example.org