1. Most Discussed
  2. Gainers & Losers
SRS 3.0¢

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
    distributor.
    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.



DISCLAIMER:
Before making any financial decisions based on what you read, always consult an advisor or expert.

The HotCopper website is operated by Report Card Pty Ltd. Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.

From time to time comments aimed at manipulating other investors may appear on these forums. Posters may post overly optimistic or pessimistic comments on particular stocks, in an attempt to influence other investors. It is not possible for management to moderate all posts so some misleading and inaccurate posts may still appear on these forums. If you do have serious concerns with a post or posts you should report a Terms of Use Violation (TOU) on the link above. Unless specifically stated persons posting on this site are NOT investment advisors and do NOT hold the necessary licence, or have any formal training, to give investment advice.

Top