PMP has blocked its suitor TMA from conducting any further due diligence as part of its plans to carry out a takeover, citing funding questions as the reason for withdrawing co-operation.
PMP says that its board is not satisfied that TMA has demonstrated the requisite funding capacity to warrant access to further due diligence. As a result, PMP will not allow further access to due diligence until the requested proof of funding capacity is provided.
TMA has offered to pay between 68 cents and 78 cents a PMP share, a more than 100 per cent premium to the PMP share price of 33.5c today. PMP’s year high price reached 62 cents on the day the bid was revealed, but has traded way below that for the rest of the year.
In the statement the company confirmed current full year guidance of earnings before interest and tax in the range of $30m to $33m. The net debt is $145m against an earlier guidance of $150m to $155m
The ticketing and labelling group TMA made a $250m takeover offer in April and delisted from the ASX last year. PMP say the TNA bid was a highly conditional non-binding indicative offer.
PMP says it is focused on the Australian print transformation and is currently finalising a detailed implementation plan.
PMP is just one of the print companies at the top end of town currently in takeover talks; Salmat is looking at selling off its $400m a year print division while Blue Star says it is receiving offers for its business.
