Exclusive Negotiations For The Sale Of Freightways
14 May 2002
AUSDOC Exclusive Negotiations For The Sale Of Freightways
Freightways Express Limited (Freightways) today announced that its parent company, AUSDOC Group Limited (AUSDOC) has entered into exclusive negotiations with a party interested in acquiring all the ordinary shares in Freightways.
The party granted exclusivity has conducted due diligence in relation to Freightways as part of the sale process conducted by AUSDOC over the past few months and will have the opportunity to conduct confirmatory due diligence on Freightways, with a view to entering binding sale documentation by 29 May 2002.
Following discussions with the Australian Stock Exchange, AUSDOC considers that the approval of AUSDOC shareholders at a general meeting will be required, should a sale of Freightways proceed.
By entering into exclusive negotiations for the sale of Freightways, AUSDOC is able to pursue a break-up strategy in relation to Freightways, DX Express and GoMail. If this strategy is implemented, AUSDOC will comprise AUSDOC Information Management (AIM) and cash proceeds realised through the break-up. Subsequently, the company would seek to facilitate the sale of AIM through an offer to AUSDOC shareholders for their shares in AUSDOC.
AUSDOC is considering its options and continuing discussions in relation to its DX Express and GoMail businesses. AUSDOC is also continuing discussions in relation to the sale of AIM. Currently, AUSDOC is not in a position to provide any further information, but anticipates making further announcements in due course.
According to Chairman, Michael Butler, AUSDOC is pleased with the progress of the sale process to date. “The arrangements in relation to Freightways, other than set out in this announcement, are non-binding and confidential,” he said. As a result, we are unable to provide any further information in relation to the identity of the party involved or the terms of any possible transaction. However, we will continue to keep shareholders informed of developments in relation to the sale process.”