By Phil Boeyen, ShareChat Business News Editor
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Monday 5th November 2001 |
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The investment company has announced the conditional purchase of Australian-based share trading educator, Metashare International. Payment is by issue of 2.16 million Cube shares.
Cube describes Metashare as a "progressive and innovative company that provides education on the fundamentals of share trading to its members using workshop, software and online methodologies."
The deal is subject to completion of due diligence and foreign ownership and shareholder approval.
Cube MD, Simon Wallace, says the acquisition will add approximately 30% to Cube's revenues with a corresponding enhancement to cash flow and profitability.
He says Cube is actively seeking and reviewing potential acquisitions which offer scope to achieve their potential through restructuring, management expertise or an injection of capital.
"What we're doing is counter-cyclical to the current consensus and early indications suggest the market is rife with opportunity to salvage businesses overlooked by others in the current climate of world uncertainty.
"Of particular appeal are those companies in Australia and New Zealand which are either profitable, have intellectual property awaiting recognition or technology based attributes, which can be exploited through licensing and distribution arrangements internationally."
Mr Wallace says acquisitions will be funded through a combination of existing Cube cash reserves and a planned capital raising of 4 million shares.
Metashare chief, Colin MacKenzie, says the deal demonstrates the true value of Cube shares, which are currently trading at a 33% discount to net tangible assets.
"We are comfortable in undertaking the sale of our business by way of a share swap as we recognise the fundamental stability of Cube Capital being backed by the cash flow of Damba Furniture and the management philosophy which is firmly committed to shareholder value."
In July Cube made a late-run to try to buy into E-cademy holdings but missed out to Australian firm Matrix IP.
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