NB Settlement for the OP Industries acquisition (refer Item 1 below)
is scheduled for 14.5.04 - no details of share issue yet
- perhaps the planned share issue is for something else they
have in mind?
----- Original Message -----
Sent: Monday, May 10, 2004 2:35 PM
Subject: Re: [sharechat] CBD Calling
Cris
HI Allan,
In my (humble, bumbling) opinion .011 is a good
entry point for CBD.
CBD Energy are planning a 50:1 consolidation
at some stage but note, they are now profitable and are also
in a major growth (acquisition) phase.
Acquisitions to-date have
been well-aligned, delivering synergies.
CBD are also planning a share issue to fund
acquisitions, but have stated that the issue price will not be less than .011
per share (see Item 3C below).
Regards,
Cris
Good news all round.
1) Good News: CBD has signed a contract to purchase
O.P. Industries for $7.5M which represents an annual multiple of 2.4 times
EBITDA and 2.7 times EBIT - in the opinion of the board the purchase price is
fair and reasonable - represents a natural extension of current business
activities - greater visibility with major corporates, developers and builders
(NB hence notice of capital raising).
Mr Earl Sakareassean has agreed
to continue in his role as MD of O.P. Industries (for the next 3 years) and
has been invited to join the board of CBD as
Executive Director.
Mr Sakareassean - "... Long identified as an area
offering growth, CBDE will provide the products, services and knowledge
necessary for O.P. Industries to credibly approach their existing and
prospective clients with energy saving possibilities. Certainly we are seeing
the demand. Tenders are increasingly seeking energy efficient alternatives ...
'
Mr Wayne Rudland, CBDE's Chief Operating Officer - " ...
complementary and overlapped skills ... far better market coverage ...
vertical integration possibilities ... cost advantages - fabrication
capability ... "
O.P. Industies have operations in Melbourne, Sydney,
Wangaratta, Albury and Ballarat with each providing a 24/7 service support
capability - 220 employees - major supplier to hospitals - approved tender for
mechanical services to Safeway/Woolworths, Melbourne Univ, Telstra -
significant works for other corps including Aust Post, The Age, RMIT,
Coles/Myer, GMH, Toll Logistics, Visy, and Pfizer. Top clients over past 5
years (>$20M of business include Probuild Constructions, Multiplex,
Telstra, Leighton Constractors, and Hooker Cockram. Settlement for the
acquisition is scheduled for 14.5.04.
________
2) Re 50:1 share
consolidation - More Good News - Shares acquired/owned by Bay Terrace Pty Ltd
and Directors are subject to the same escrow restrictions as set out in CBD's
ASX Announcement dated 30.6.03, namely voluntary escrow until 30 June
2005.
Broadly, the escrow restrictions preclude directors of CBD Energy Limited from selling any
shares in the company on market (other than by way of special crossings), and
directors must provide the Chairman with at least 3 business days written
notice of any intention to sell shares off market (including special
crossing).
Holdings Follow:
A) Non-Exec Director: Nick Kephala -
continued to acquire late 2003
- holding 142,480,823
B) Non-Exec
Director: David Hood - has acquired 4,132,333 (direct) & 750,000
(indirect) in total
C) Major Shareholder: Bay Terrace Holdings Pty Ltd
- holding 919,845,892 (45.6% control of voting power)
D) Chief
Financial Officer: Robert Edis - new - nil holding to-date
E) Non-Exec
Chairman - Gerry McGowan (assoc TRW Holdings Pty Ltd) - new - nil holding
to-date
_______
3) Re Share Issue to raise $10M - Again, Good
News:
A) ' ... Directors have agreed that the capital raised may only
be utilised to fund acquisitions that result in positive earnings per share
for the Company as a whole. ... '
B) ' ... It is envisaged that the
funds will be raised by placements to institutions and sophisticated investor
clients of stockbrokers once a proposed acquisition is nearing completion. The
company is only raising funds for acquisition purposes. ... '
C) ' ...
at an issue price of at least 90% of the weighted average market price of the
Company's fully paid ordinary shares over the preceding 5 trading days before
the day on which the issue is made, and in any event, not less than
$0.011 per share. ... '
________
----- Original Message -----
Sent: Monday, May 10, 2004 1:43
PM
Subject: [sharechat] CBD Calling
Cris
Cris,
I note in several of your posts you say
you're watching CBD for a good entry point. If you would'nt mind
revealing the info, what is your idea of a good entry point??
It
appears that you market is selling off rather sharply today -- I do wish you
would not follow our bad example we set on Friday here.
Allan
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