C.S.G. BUYS 90% OF KONICA-MINOLTA CORP IN NEW-ZEALAND

[Anonymous]

C.S.G. BUYS 90% OF
KONICA-MINOLTA CORP IN NEW-ZEALAND
Australia
print services firm CSG has entered into an agreement to buy a 90 per
cent stake in Konica Minolta Business Solutions for NZ$107 million and
pay a further NZ$25m for full ownership of Leasing Solutions.ASX-listed
CSG said it planned to fund a portion of the acquisitions through a
fully underwritten institutional placement of new shares raising about
A$65m (NZ$82m), subject to shareholder approval.

Konica Minolta
is strong in the New Zealand document management solutions and digital
production printing markets. Leasing Solutions, meanwhile, operates a
standard finance lease model and currently manages an AA- rated finance
book worth NZ$130m.Both businesses belong to the Onesource Group in New
Zealand, which also owns Cogent Communications and Imagetec Office
Solutions, formerly Danka.

Onesource chief executive Evan Johnson
says the two businesses have prospered under the current ownership
structure despite a difficult recessionary environment. Having come
through the downturn, both businesses are well positioned for growth, he
said.Combined Konica Minolta and Leasing Solutions are expected to
generate NZ$25m worth of revenue before interest and tax in the 2010
financial year.

Mr Johnson said the transaction had the full
support of Konica Minolta Business Technologies in Japan, which will
retain its 10 per cent shareholding in the New Zealand business, as part
of a long term joint venture relationship that ensures exclusive
distribution and support of Konica Minolta products and services to the
New Zealand market.Under the deal Mr Johnson will retain his role as the
managing director of the New Zealand businesses and will join the CSG
Australasian steering committee.
http://www.stuff.co.nz/business/industries/3154186/CSG-enters-into-Konica-Minolta-deal

[Author]

December 21, 2009 at 10:20 AM