PMP shares are going gangbusters after news emerged the printer would combine with fellow giant IPMG, soaring to a peak of 87c and reaching a five-year high.
Following the merger news on Friday, PMP shares climbed by 37 per cent to a high of 87 cents, a comparable share jump not seen since early 2011.
PMP launched on the ASX in 1991 under the trading name of Pacific Magazine and Printing after originating as part of Rupert Murdoch’s print empire.
It is expected PMP shareholders will favour the transaction with IPMG after PMP’s directors unanimously recommended approval.
PMP will be suspending its dividend and share buy backs during the implementation period. Both company’s management forecast the deal will deliver $40m per annum in pro-forma cost synergies across the freshly combined entity.
The deal itself will see PMP acquire 100 per cent of Hannan-owned IPMG, and as part of the transaction IPMG owners will own 37 per cent of PMP, in shares valued at $119m.
After Friday’s share skyrocket, shares only fell by one cent to 86c as of yesterday. The day before the announcement, PMP share sat at 63.5c.
PMP’s acquisition is set to be completed in January next year, pending shareholder and ACCC approval.
Fellow ASX-listed print giant IVE is also enjoying steady share volumes since its IPO in January, and is now sitting at $2.11 after an initial launch of $2 per share, up by five per cent roughly in line with the All Ords tracker.
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