The trans-Tasman group has received multiple offers from unnamed parties, including “an unsolicited conditional proposal to acquire all of the business” and “unsolicited approaches to acquire certain divisions or business units within the group”.

Managing director Phillip Bower told ProPrint he was enthusiastic about the M&A activity and the group’s prospects.

“It tells me it’s a fantastic business and there are people who see the inherent value in the business.”

“The underlying business at Blue Star is outstanding… [The future] is very good. It’s fantastic. We’re in a terrific position.”

He said the company had rebounded well from last year’s difficulties despite a difficult market and that customers were “very, very happy with our performance”.

Bower wouldn’t reveal how many proposals had been received. He stressed they were not formal takeover offers, but proposals to hold discussions that might lead to formal offers.

The board has not set a timeline for considering the proposals.

In its statement, Blue Star said: “For confidentiality reasons, the terms of this offer cannot be disclosed but it does reflect the well-publicised difficult trading and economic conditions affecting the print industry.”

Bower would not be drawn on whether this translated as a low valuation for Blue Star.

He said the takeover activity surrounding PMP, Salmat and now Blue Star showed the industry was in a period of consolidation in which companies were looking at synergies as a way to grow in a depressed market.

Today’s announcement also revealed that Blue Star “expects to enter into a conditional agreement to sell its [New Zealand] Rapid Labels division in the coming days”.

Bower said last week’s rumours that the company might be about to enter administration had been unfounded and had destabilised staff.

“There’s lots of rumour-mongering in the industry and it doesn’t help. Nine-tenths of what’s said is absolute rubbish,” he said.

The rumours were generated after news leaked that Blue Star was in talks with its banks.

Today’s announcement said Blue Star had been conducting a review “focusing on a potential sale of all, or parts, of the business” during which its “senior lenders” had agreed to “maintain their support”.

“However, the board wishes to reassure staff, customers and suppliers that the directors intend to continue the business as normal, subject to the continued support of the senior lenders.”

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

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