PMP to TMA: show us the money or we’re not showing you the books

Australia’s biggest printing company announced yesterday it had closed its books to TMA because the group had not “demonstrated the requisite funding capacity” since making its “highly conditional non-binding indicative offer” in April.

TMA has so far been granted “access to limited due diligence materials”, according to a statement from PMP chairman Ian Fraser.

However, PMP said it was “not satisfied” TMA had enough money to complete the takeover and that it would deny access to its books until “proof of funding capacity is provided”.

TMA hit back, saying it was “perplexed” by PMP’s decision.

“TMA has engaged in good faith in its discussions with PMP and its advisors and believes it has provided a robust and credible proposal for consideration by the PMP board,” said TMA chief executive Anthony Karam in a statement.

“TMA believes it has addressed all outstanding issues relating to the financing of its proposal.

“TMA will seek to continue to engage with PMP to agree an outcome that will deliver real value to PMP’s long-suffering shareholders.”

Meanwhile, PMP confirmed earlier predictions that it had ended the 2011-12 financial year with earnings before interest and tax and before significant items of $30-33 million.

It also announced that its net debt was $145 million after earlier predicting a figure of $150-155 million.

PMP said it remained focused on its print transformation plan and would probably provide an update on 27 August when making its FY12 profit announcement.

Click here to read about the ups and downs of PMP.

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