Forum Archive Index - July 2000

["Dawber, John" <J.F.Dawber@massey.ac.nz>]

Hi there

I have been reading the sharechat messages for several moths now and have
found it quite interesting.  I thought now would be as good a time as any to
get involved.  I am new to investing on the share market and have been told
by a friend who works at commsoft that it will be a good investment when it
floats next month. 

Strathmore upped its stake in May to 38% and has just made the following
announcement.  I'm not quite sure what the announcement means.  Are they
exchanging commsoft shares for their own shares? Can I take from this that
commsoft is a good investment in their opinion, are they trying to get rid
of their stake? Does anyone else have views on Commsoft as an investment.

Regards
John

> SMR
> 24/07/2000
> DSELL
> 
> REL: 1541 HRS Strathmore Group Limited
> 
> DSELL: SMR: 15% BUY BACK WITH COMMSOFT SHARES AS CONSIDERATION
> 
> Directors recommend shareholders not sell pending finalisation of terms
> and
> structure of offer
> Strathmore Group has announced a pro rata offer to buy back 15% of the
> company's capital. The offer will be made to all shareholders recorded on
> the
> register as at 04/08/2000 and will be funded by the provision of shares in
> Strathmore investee company CommSoft Group. Strathmore shareholders will
> receive the formal offer form and buy back information memorandum
> containing
> the share ratio details in August and will have ten days in which to take
> up
> the offer. The directors of Strathmore have indicated their intention to
> accept the buy back.
> Strathmore's Executive Chairman, Phil Norman, said that both Strathmore
> board
> members and cornerstone investors supported reshaping the balance sheet
> through a return of capital to shareholders. In addition the cornerstone
> and
> institutional investors in Strathmore, which include Advantage Group,
> Cullen
> Investments and New Zealand Funds Management, have indicated their
> intention
> to accept. These companies, together with the directors, hold a combined
> shareholding in Strathmore of approximately 38%. The relative stakes of
> all
> shareholders will remain the same after the buy back should remaining
> shareholders accept the offer.
> An international leader in the development of niche software products for
> the
> telecommunications industry, CommSoft's success has been driven by strong
> market share and sales channels in New Zealand, Australia, the United
> Kingdom
> and South Africa. "Its international presence, strong management team and
> established CMS and CRM software have made it an attractive prospect for
> investors looking to invest in a growth company in a growth industry,"
> says
> Norman.
> Strathmore will announce further details about the offer over the next few
> weeks as the final documentation process is completed regarding the offer
> itself and associated statutory compliance issues.
> 
> 

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