PMP buys Times Printers Australia for $80 mln

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Printing and media services company PMP Limited (PMP) has entered into a contract to acquire Times Printers (Australia) Pty Ltd ("TPA") from Singapore's Times Publishing Limited ("TPL") for approximately $80 million.

The purchase price will be met by PMP issuing to TPL on completion approximately 39 million new ordinary shares at $1.65 each, with the balance of $15 million to be paid in cash.

The issue price is a 12c premium to the volume weighted average share price of PMP in the period 15 days prior to the announcement date.

The issued shares will equate to 11.5% of the expanded share capital of PMP on completion.

PMP chief executive Brian Evans said the transaction would improve earnings per share (EPS), once PMP's overhaul was complete.

EPS in the most recent financial year was 15.3 cents.

PMP had been planning to upgrade its print assets in Victoria to bring them in line with the company's Sydney print operations.

"Acquiring Times Publishing (Australia) delivers PMP this upgraded capability in Victoria, and also creates a strategic relationship for PMP with Times Publishing in Asia," Mr Evans said.

PMP expects to complete the acquisition by 15 November 2007.

A Victorian-based printer of magazines and catalogues, Times Printers is equipped with advanced print technology.

Customers include some of Australia's leading companies, PMP said.

PMP's most recent corporate activity, a proposal to merge its book printing subsidiary, Griffin Press with that of McPherson's Ltd, was rejected by the Australian Competition and Consumer Commission (ACCC) in August.

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