Opus Group has revealed notice for its Annual General Meeting with the agenda primarily focused on pushing the sale of its Singapore arm COS Printers to its parent 1010 Printing.
The group currently operates the Singapore division wholly through COS Printers, however earlier this month revealed plans to sell it off in a bid to withdraw from the Asian market.
Opus states the rationale for the sale was due to ‘little synergy between COS Printer’s printing business located in Singapore and Opus’ printing business located in Australia and New Zealand’.
Opus chief executive Celarc says the group ‘recommends shareholders vote in favour of the resolution’ as ‘advantages outweigh the disadvantages’ and is in the best interest of the company.
The group says ‘geographical differences’ pushed the company to divest in the Singapore market, and following the sale COS will operate as a standalone printing business.
According to the group the sale will also allow management to ‘unlock the value’ in Opus’ investment in COS and return the value to its shareholders. The value of the proposed return has not been disclosed by Opus.
[Related: Opus to sell off Singapore arm]
The $19.3m deal will be discussed during the AGM on May 9 , where valuation firm Lonergan Edwards & Associates (LEA) will state the proposed transaction is ‘fair and reasonable’ to shareholders of Opus other than Hong Kong group 1010, which holds a 62 per cent stake.
Opus says LEA valued the shares in COS at between $10.9m and $11.4m.
The group formed a strategic alliance with COS Printers in 2009 and subsequently acquired the business in September 2010.
Opus assures shareholders and clients the sale will not affect its operations as a global publishing house.
“Although Opus Group will lose its presence in the printing business in Singapore, with the backing of 1010 Group as a substantial shareholder, Opus’ accessibility to print for the world’s largest publisher’s will not be affected,” the company says.
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