The company’s board has unanimously approved the transaction, which is now subject to the approval and compliance with the requirements of the corporations Act and the ASX listing rules.

Commenting on behalf of Wellcom, Julian Graham, chief financial officer says the company has altered its business strategies since the purchase of the Cadillac interest in 2006 and as a 50 per cent owner of the printer, Sidwell was the most logical buyer of Wellcom’s interest.

He says, “Wellcom focuses on pre-media, and printing has never been our core business, we are confident we still be able to leverage benefits from our collaboration with Cadillac without actually owning it.

“We bought it initially because we thought it was a good price and we had the opportunity to bring sales to it. Our strategy has since changed as we are growing our business in our core areas rather than in print.”

The transaction is expected to be officially approved at Wellcom’s AGM on October 21. It is expected that the transaction will not materially affect earnings per share in the current financial year.

Sidwell declined to comment on his decision to buy Wellcom’s interest in Cadillac.

Cadillac is one of the ten heatset printers in Australia.

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