Forum Archive Index - June 2000

[Mike Nelson <bb2345@ihug.co.nz>]

FRO
20/06/2000
COB
 
REL: 1606 HRS Frontier Petroleum No Liability
 
COB: FRO: FRONTIER/RMG TRANSACTION COMPLETE
 
Frontier Petroleum (ASX: FRO) today settled the acquisition of the business
interests of Receivables Management Limited (RML) and a number of associated
companies in Australia and New Zealand for $A80 ($NZ100)m
Frontier has now changed its name to RMG Limited and is expected to relist in
both Australia and New Zealand within the next two weeks.
The transaction was settled by the issue of 296 m Frontier ordinary shares at
a price of $A0.20 ($NZ0.25) each and the payment of $A20 ($NZ25) million in
cash.
The settlement follows the successful completion of a $A25 m capital raising
from investors in Australia and New Zealand.
New RMG chief executive Mr Paul Cooney said: "the fact that we have been able
to raise this capital during such volatile times in international
sharemarkets comes as a vote of confidence in the new direction of RMG and
the opportunities that exist within the receivables management sector."
The transaction creates a $A120 ($NZ150) m company which will be the first to
offer an integrated range of receivables, debt management and credit
reporting services under a single umbrella on both sides of the Tasman.
An earlier independent appraiser's report commissioned by Frontier for
shareholders had declared the transaction fair and reasonable.
Mr Cooney and Mr David De Campo have been elected as directors of the
company. Mr Cooney replaces Mr John Tarrant as chief executive. Mr Tarrant
continues as a director of the company. Mr Graeme Boden has resigned as a
director.
Mr David McLaughlan has been appointed chief financial officer and company
secretary, replacing Mr Rowley Butters.
Mr Cooney said RMG was formed to consolidate the receivables management
industry in line with international trends.
"Historically, the receivables management industry has been fragmented,
comprising many small players offering a limited range of products and
services, Mr Cooney said.
"RMG has the mass, resources and capabilities, unique information and
intellectual property sufficient to meet all client service requirements
under the one roof. We believe we will be able to lead the industry in
meeting the expected demand from both the public and private sectors for
outsourcing the management of a range of functions such as ledger management,
debt purchasing and a variety of other services including credit
information," he added.
The new receivables management group has been formed out of 10 Australian and
six New Zealand businesses. "The integration of the New Zealand businesses is
almost complete and the plan for the integration of the Australian businesses
is well advanced, Mr Cooney said.
"We are also actively pursing new business opportunities.  These are
opportunities that would not have been available to the individual
receivables companies before the merger but which we are now well placed to
serve."
RMG is forecast to turnover $A57 ($NZ71) m providing net profit after tax of
$A5.9 ($NZ7.37) m in the year to June 30, 2001.
 
*****************************************************
Looking for top accommodation in Wellington for more than a week ? Check
out our homepage at http://homepages.ihug.co.nz/~bb2345/

*****************************************************

----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.