The future of print giants PMP and IPMG’s mega merger will be decided next month at PMP’s Extraordinary General Meeting (EGM), where shareholders are set to vote to either oppose or approve the deal.
PMP’s EGM will be held on December 16, the merger set to go under the microscope by the ASX-listed printer’s investors. If the proposed transaction is approved by PMP shareholders – also pending approval by consumer watchdog the ACCC – the two print giants will officially merge by January next year.
In a statement delivered to shareholders, PMP urges its investors to vote in favour of the transaction in a bid to follow the trend of industry consolidation.
[Related: PMP to merge with IPMG]
“Industry consolidation is an important and necessary strategic response to sustain PMP’s future given the challenges in the print industry. IPMG is a strong fit, with similar customer-focussed values and commercial approach,” says PMP.
“The PMP Board believes there is a strong commercial and strategic rationale for the proposed transaction. PMP Directors unanimously recommend that PMP shareholders to vote in favour of the resolution.
The proposed transaction represents the response by PMP to challenges affecting the printing industry. If it does not proceed, the PMP share price may fall lower than the share price at the time of the announcement.”
PMP also says independent expert Grant Thornton has concluded the deal is fair and reasonable to PMP shareholders.
If the transaction is not approved by the majority during PMP’s meeting next month, the merger will not proceed.
The merger – set for completion on or by January 3 – would see IPMG own 37 per cent of the issued share capital of PMP, the other 63 per cent held by existing PMP shareholders. This transaction will see the Hannan family become PMP’s majority shareholder.
PMP’s share price shot up by a third following news of the deal.
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