Opus Group has entered into an agreement to sell off its Singapore division, COS Printers to its majority shareholder, 1010 Printing Group, in a deal which will be worth $19.3m. The 1010 Printing Group will pay an initial $11m to take COS out of Opus, and will pay another $8m if 1010’s shareholding in COS reduces to less than 50 per cent anytime over the next three years. Diversified trans-Tasman print group Opus has owned COS since 2010, it was its first overseas business. Australian Printer understands the decision was made by Opus management in an effort to better focus on its Australian and New Zealand printing businesses.

Opus Group managing director Cliff Brigstocke

Opus assures its other print businesses will not be disrupted by the proposal. Before the deal can be finalised, approval from Opus shareholders not associated with 1010 Group must be sought at Opus’s 2016 Annual General Meeting, set to take place on April 6. Opus managing director Cliff Brigstocke has confirmed no further details can be given out regarding the matter until after the AGM when the independent auditor’s findings will be made available. The agreement is also subject to COS Printers maintaining a minimum SG$6.8m in net tangible assets, and Opus entering into a two year non-compete agreement with COS Printers. Hong Kong based printer 1010 Group took control of Opus in September 2014 after it purchased 61 per cent of the company, effectively bailing it out from $51m debt. Opus announced a $12m profit in its last set of results. The proposed sale to 1010 comes shortly after last week’s management reshuffle which saw Brigstocke step down as CEO to focus on sales and marketing, to be replaced by executive chairman Richard Celarc.

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