Promentum under scrutiny from possible buyers

In a statement to shareholders Ian Elliot, chairman, said both print industry participants and private equity firms had recently approached the company “to explore potential acquisitions, mergers or possible privatisation options.” He confirmed the company has already received non-binding, indicative offers, which he labelled as “preliminary, incomplete, conditional and requiring extensive clarification.”

However some of the parties have indicated they want to enter into formal due diligence to determine the value range they may wish to offer for Promentum shares. In order to facilitate this process the company has decided to open up its books for a limited period and advises parties that binding offers are to be submitted no later 14 December.

“The Board will subsequently consider whether any such proposals put forward have commercial merit and the potential to enhance shareholder value beyond that which the Company’s own growth strategies may potentially deliver.”

The private equity approach to Promentum is the latest in a series of manoeuvres impacting on the local industry. One major Sydney-based printing company is supposed to have a memorandum out to potential suitors, including private equity funds, seeking participatory offers by the middle of the month, while PMP, which is a 26 per cent shareholder in Promentum, is also exploring the financial vehicles required to take the industry’s largest company off the stock market.