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SRS 3.8¢

Back up the TRUCK - PPX _ PPX

  1. 728966

    254 Posts.

    BUY! anyone seen the announcement. The way this company is performing in the bottom of its business cycle is impressive

    try and purchase around the institutional placement price. will be difficult but this is a great stock.

    one of the few winners for this week - imho -
    cant wait for my bonus $3k issue

    $6+ in 12 months? nice yield 5.2%

    conservative debt/equity levels leave more room for acquisitions/expansion

    see ann.....

    Paperlinx buys UK paper company; final dividend 14c
    11:30, Wednesday, 26 June 2002

    Sydney - Wednesday - June 26: (RWE) - Paperlinx Ltd is to buy
    UK-based Bunzi Fine Paper from Bunzi plc, effective July 1, for 138
    million pounds ($365 million), excluding costs.
    The purchase will be funded from existing bank lines and an
    issue of new shares.
    An institutional placement is being undertaken today via a
    bookbuild process to raise about $125 million.
    Paperlinx also intends to allow shareholders to subscribe for up
    to $3000 worth of shares at the institutional placement price through a
    $50 million share purchase plan.
    Commenting on trading conditions, managing director Mr Ian
    Wightwick said: "Against a background of the global recession in
    commercial activity, reduced advertising and promotional discretionary
    spending has created challenging conditions for paper merchants.
    "Although current trading conditions remain subdued, we expect
    earnings per share for the year to June 30 to be at a similar level to
    last year, despite the dilutive effects of divestments made throughout
    the year."
    He said the final dividend would be at a similar level to last
    year at 14c a share and would be less than fully franked.
    Bunzi Fine Paper is one of the top fine paper merchants and
    distributors in the UK and Ireland with 14 per cent market share.
    The acquisition is consistent with Paperlinx's strategy of
    developing its position as a leading international paper merchant and
    Bunzi is expected to be immediately earnings per share
    accretive, both before and after amortisation.
    It is targeted to achieve Paperlinx's criteria of 15 per cent
    EBIT return on funds employed by the third year.
    Following the acquisition, Paperlinx will have annualised sales
    revenue of about $4 billion and employ 5000 people in 12 countries.
    Paperlinx said the funding arrangements would result in a strong
    balance sheet, allowing the company to consider further acquisitions in
    North America and Europe.
    A trading halt was granted to Paperlinx today while the
    placement was undertaken.

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