Blue Star holds back annual report as sales process drags on

The trans-Tasman print group announced today that it would delist its bonds on 28 August, thereby removing its obligation to report to the New Zealand Exchange (NZX).

The results were due to be released to the NZX this month but will now be submitted to regulatory authority Companies House later in the year, according to Blue Star managing director Phillip Bower.

He told ProPrint that holding back the results would allow the company to better manage the sale process.

“What happens is when you present results to the marketplace, market conjecture in terms of valuation and what may or may not happen can change the way bidders look at the business,” he said.

“We’ll still pleasingly submit our results under reporting requirements and that will be later in the year.”

The timing of the delisting announcement should not be taken as evidence of any specific developments in the sale process, said Bower.

Blue Star has historically published its financial results on the NZX to provide guidance to bond traders, but that no longer applied as trading in the bonds had all but ended, and the bonds are essentially worthless.

The group used today’s announcement to confirm that it is “unlikely that any value will attach to the group’s NZDX-listed bonds”.

Bower added that it was illogical to provide unnecessary information that could disrupt the sale process.

Blue Star said delisting would have no adverse effect on its businesses, “which continue to trade profitably”.

Today’s announcement also revealed that Champ Private Equity had fulfilled its commitment to transfer NZ$14.8 million of funds to Blue Star, agreed upon during last year’s financial restructure.

Click here to read about the ups and downs of Blue Star.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter

Leave a comment:

Your email address will not be published. All fields are required

Advertisement

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.
Advertisement