Strathmore Announces 15% Buy Back
Strathmore Announces 15% Buy Back Of Capital With CommSoft Shares As Consideration
Directors recommend shareholders not sell pending finalisation of terms and structure of offer
AUCKLAND – 24 July 2000 – Internet and technology investment company, Strathmore Group Limited (NZSE: SMR) today announced a pro rata offer to buy back 15% of the company’s capital. The offer will be made to all shareholders recorded on the register as at 4 August 2000 and will be funded by the provision of shares in Strathmore investee company CommSoft Group Limited. Strathmore shareholders will receive the formal offer form and buy back information memorandum containing the share ratio details in August and will have ten days in which to take up the offer. The directors of Strathmore have indicated their intention to accept the buy back.
Strathmore’s Executive Chairman, Phil Norman, said that both Strathmore board members and cornerstone investors supported reshaping the balance sheet through a return of capital to shareholders. In addition the cornerstone and institutional investors in Strathmore, which include Advantage Group, Cullen Investments and New Zealand Funds Management, have indicated their intention to accept. These companies, together with the directors, hold a combined shareholding in Strathmore of approximately 38%. The relative stakes of all shareholders will remain the same after the buy back should remaining shareholders accept the offer.
An international leader in the development of niche software products for the telecommunications industry, CommSoft’s success has been driven by strong market share and sales channels in New Zealand, Australia, the United Kingdom and South Africa. “Its international presence, strong management team and established CMS and CRM software have made it an attractive prospect for investors looking to invest in a growth company in a growth industry,” says Norman.
Strathmore will announce further details about the offer over the next few weeks as the final documentation process is completed regarding the offer itself and associated statutory compliance issues.
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 Limited
Tel +64 21 667 210, E-mail: email@example.com
Director, Botica Conroy & Associates
Tel +64 9 303 3862, E-mail: firstname.lastname@example.org