Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Cabletalk Group Announces Key Transaction

Cabletalk Group Announces Key Transaction And 9 For 1 Rights Issue

Auckland 11 June 2001 – New Capital Markets issuer, Cabletalk Group Limited (NZSE CTG), today released a Notice of Meeting and Explanatory Memorandum outlining the key transaction it proposes to shareholders. The proposed transaction is the acquisition of CANS (Cabletalk Astute Network Services), a telecommunications network service company formed by the amalgamation of four telecommunications network building and maintenance companies.

Following an independent valuation by PricewaterhouseCoopers, Cabletalk Group’s independent directors, Mr Ross Keenan and Sir Selwyn Cushing, have negotiated a purchase price of $15.352 million for CANS, comprising $4.484 million in cash and $10.868 million in new shares at an issue price of $0.50 per share.

Upon completion of the key transaction and cash issue, Cabletalk Group is forecasting an after tax profit (prior to goodwill amortisation) of $2.2 million for the current year. This represents a P/E multiple of 8.2 times on the issue price of $0.50 per share.

The key transaction will be presented for approval by shareholders at a special meeting on 22 June 2001. Shareholders will also be asked to approve a subsequent public offering (SPO) of 11,600,000 new shares at $0.50 per share, comprising of a 9 for 1 renounceable entitlements issue for existing public shareholders. Subject to shareholder approval, rights will be able to be traded on the NZSE from 25 June to 11 July. The SPO will open on 25 June and close on 13 July.

The funds raised will be employed to finance the cash consideration of the key transaction, to strengthen the company’s balance sheet and provide funding for growth opportunities. The SPO is underwritten by organising broker ABN AMRO Craigs.
“ After its acquisition of CANS, Cabletalk Group will be one of the leading telecommunications network servicing companies in New Zealand and have significant opportunity for growth in a rapidly expanding sector.” says Ross Keenan.

“Cabletalk was founded to take advantage of opportunities in telecommunications network servicing in New Zealand and Australia,” he added. “The role and scope of telecommunications networks is increasing dramatically as technology converges and TV, computer, phone, fax and security systems increasingly communicate through the same networks. On the back of this, telecommunications network building and servicing is also becoming big business.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>


Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news