Ovato’s administrators, FTI Consulting, are operating the troubled catalogue and magazine printer business-as-usual but have also issued a call for Expressions of Interest to buy the troubled ASX-listed business.
Any companies wishing to make a bid for Ovato, or parts of it, need to register their interest by this Friday July 29 with binding offers due by Thursday August 11.
Once an interested party has registered their interest and signed a confidentiality agreement, the data room will be opened up in order to prepare a bid.
All bids will be considered by the administrators with the one that best suits creditors to be chosen. Once the binding offers are received it is likely to be weeks not months before a decision is made.
FTI Consulting is hoping to sell the business as one unit but it is possible the New Zealand arm of Ovato could be split off and sold separately.
A number of companies are likely to be interested in purchasing the business with Hong Kong-owned Opus Group a strong contender given its recent purchase of Ovato’s book printing division, loan support and $2.5 million Convertible Note.
Mercury Capital, the private equity fund which owns magazine publisher Are Media, is another contender. Mercury Capital already owns shares in Ovato and recently purchased its retail distribution arms in Australia and New Zealand.
In an advertisement in the Financial Review, FTI Consulting points to Ovato’s investment highlights including:
- having an established foothold in the catalogue and magazine printing market and packaging industry;
- long-standing relationships with premium Australian and international brands;
- national workforce and leasehold footprint with sites possessing heatset web and sheetfed press equipment plus bindery and mailhouse capabilities;
- secure supply of web and sheet paper to meet demand in a disrupted market;
- and an opportunity for streamlined operations and a sustainable balance sheet following restructuring.
Interested parties are urged to contact Drew Forbes at FTI Consulting at drew.forbes@fticonsulting.com or call 0410 697 715.
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