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


Income Equality: Time To Double-Down On Cutting CEO Salaries

With reports of a slow-down in CEO pay rises last year, it’s time for Kiwi corporates to double down on cutting excessive salaries to ensure this is a trend not an accident, said Peter Malcolm, spokesperson for the income equality project Closing the Gap. More>>

Manawatu-Whanganui Projects: PGF Top-Up To Rural Broadband Roll-Out

The government has effectively raided the $3 billion Provincial Growth Fund to top up the budget for the second phase of its rural broadband initiative, filling in mobile 'black spots' and ensuring broadband is available to marae that don't have access now. More>>


Other Windy Cities: Auckland-Chicago Named A Top 10 ‘Most Exciting’ New Route

The inclusion of Auckland-Chicago on Lonely Planet’s Where to fly in 2019? The 10 most exciting new flight routes list comes just two weeks before Air New Zealand prepares to celebrate its inaugural flight to Chicago’s O’Hare International Airport on 30 November. More>>

Deadly Strain: ESR Ups Its Reporting On Meningococcal Disease

The increasing number of cases of Group W Meningococcal disease (MenW) has prompted ESR to increase its reporting on the disease to the Ministry of Health. ESR has upped its reporting to weekly. More>>