Failure To Deliver Agreement On Freightways
30 May 2002
Negotiations Fail To Deliver Agreement On Freightways Sale
Freightways Express Limited’s parent company, AUSDOC Group Limited (AUSDOC) (ASX:AUD), today announced that negotiations in relation to the sale of all the ordinary shares of Freightways Express Limited (Freightways) to a party (the Freightways Buyer) have failed to deliver an agreement that the AUSDOC Board believes is in the best interests of AUSDOC shareholders.
On 14 May 2002 AUSDOC announced that it had entered into exclusive negotiations with the Freightways Buyer in acquiring all the ordinary shares of Freightways. The Freightways Buyer’s right to conduct exclusive due diligence and to negotiate binding sale documentation with AUSDOC expired yesterday.
Freightways and AUSDOC Chairman, Michael Butler, says, “We are continuing discussions with another party with whom AUSDOC entered into exclusive negotiations in relation to a possible cash takeover offer for AUSDOC shares, as announced on 22 May 2002.
“Naturally, we are disappointed that negotiations in respect of the sale of Freightways have not yet reached a satisfactory conclusion. However, our discussions in relation to a cash takeover offer for AUSDOC shareholders are proceeding and we continue to pursue a course which we believe will best realise value for AUSDOC shareholders.”