Announcement reason for rise

  1. 14 Posts.
    Here is the answer to my own question - that's why CSB has been going up so much:

    Comet Satellite 8 Cable Ltd
    A.C.N. 088 412 748
    PO Box 6482
    Ph: (02) 8748 2530 Fax: (02) 8748 2577
    To: ASX Announcements
    F m : Brett Crowley
    Date: 14 August 2002
    Re: Acquisition of BSA Ply Ltd
    No. of Pages: 2
    Fax No: 1300 30OOZl
    Acquisition of BSA Pty Ltd diversifies Comet‘s markets and doubles its size
    Comet Satellite & Cable Limited is pleased to announce the proposed acquisition of all the
    shares in BSA Pty Limited. BSA is a Sydney based company with a significant position in the
    rapidly growing broadcast equipment and services markets in Australia including:
    masts and towers
    radio and TV trmsmission products
    microwave transmission products
    manufacturing antenna products.

    BSA is a profitable and growing business with a high quality team of managers. The company
    has in place a number o f supply agreements with the world’s lading OEM’s in the broadcast
    equipment field and has successfilly developed markets for that equipment in Australia BSA
    has reported normalised NPAT of $l .3 1 million (unaudited + after adjusting for non-recuning
    one offexpenses) on revenues of$14.3 million for the 12 months to 30 June 2002.
    BSAs business will complement Comet’s leading position in the pay -TV installation industry.
    Cornet’s national installation infiastmcture will expand the senices able to be offered by BSA.
    Management ofboth companies are formulating an aperational integration plan to ensure that
    both businesses achieve maximum leverage &om the enhanced capability of the merged group.
    The acquisition is subject to final due diligence and approval by Comet’s shareholders.

    The Company has entered into a legally binding Beads of Agreement with BSAs shareholders to
    acquire BSA through the offer and issue of Comet shares.
    The Heads of Agreement i s subjec! to the following material conditions precedent:
    faitisfactory due diligence being completed by CO& and BSA;
    Formal documentation reflecting the proposed transaction being
    entered into by the parties; and
    m comet obtaiaing all necessary shareholder approvals required under, and complying with all
    relevant provisions of, the ASX Listing Rules and the Corporations Act in order to complete
    the transaction.
    On completion of the acquisition Comet will issue 70,810,133 shares to the vendors of BSA,
    with up to a further 10,000,000 Comet shares being issuable in the following 2 years on certain
    targets being met. The vendors will vohntarily escrow 80% ofthe initial issue for 2 years.
    Comet cunently has 80,810,133 shares on issue, so on completion the vendors of BSA will hold
    46.7% of all Cornet shares, and if the further 10,000,000 shares are issued they will hold 50%.
    At completion Daniel Lipshut, Brian Baldwin, and Robert Hallas, directors of BSA, will be
    appointed directors of Comet. Mr Lipshut will be appointed joint Managing Director with Mark
    Comet will make a further announcement when final due diligence is completed. At this stage it
    is exppded that the shareholder meeting for approval of the transaction will take place in
    November. The notice of meeting with an acwlnpmying infomation memorandum (containing
    detailed information about the transaction) and an independent expert's report on the acquisition
    will be sent to Comet shareholders before that meeting.
    contact Brett Crowley on 02 9648 0622.
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