UPDATE: PMP shareholders have overwhelmingly voted to approve the company's merger with IPMG, with 99 percent in favour of the deal.
At an extraordinary general meeting this morning, Matthew Bickford-Smith, chairman PMP Limited, urged shareholders to approve the merger, saying IPMG is a strong fit for PMP. "It has similar, customer-focused values and commercial approach. Together we are better placed to adapt to the realities of the Australian print industry in the decade ahead. In the process, we will create a more efficient and sustainable PMP – and value for our clients and our shareholders," Bickford-Smith said.
Bickford-Smith said the merger would deliver $40 million in annualised cost savings for a one-off cash cost of $65 million, which would enable payback in 12-24 months. He told shareholders that the deal would enable PMP to more effectively compete in the catalogue printing and distribution market. "The merged company will be able to optimise its print fleet and invest in the latest digital technology to meet the ongoing demand for integrated, end-to-end print and distribution solutions. The result will be a more efficient, sustainable and agile organisation, far better positioned to adapt to industry change in the future," he said.
If the deal goes ahead, PMP will acquire 100 percent of shares in IPMG, and the Hannan family will be issued new shares in PMP totalling 37 percent of the combined company. Michael Hannan, Executive Chairman of IPMG, and Stephen Anstice, Former CEO of IPMG and current Chairman of CSG Ltd, will join PMP's board of directors under the agreement.
The deal will now have to pass the ACCC's public review, which will hand down a decision next Thursday December 22, in order to proceed.