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Here is the company's latest news release. I hope others are following this stock as I am.
Comptec Industries Ltd -
62.5% of Actual Maschinenbau acquired
Comptec Industries Ltd CIL
Shares issued 12411143 1998-04-06 close $2.36
Tuesday Apr 7 1998
Mr Robert Gardner reports
Comptec Industries has executed an acquisition agreement for 62.5% of Actual Maschinenbau AG of Austria, a manufacturer of extrusion equipment, window manufacturing equipment, and tooling for the extrusion industry, employing approximately 350 people throughout its locations worldwide.
Comptec will purchase 62.5% of the shares of Actual by the issuance of Comptec common stock in the amount of US$1,000,000, valued on June 30 1998. In addition, Comptec will retain an option to purchase a further 7.5% on or before July 1 2001 for US$1,000,000 to be paid in stock, valued at the exercise date, providing the minimum market value of Comptec common shares is C$7.00.
Comptec retains the option to pay for the balance of 30% of Actual after August 1 2001 in the amount of US$3,770,000, payable half in stock at the then current price, providing the minimum value is C$7.00, and half in cash. In the event that Comptec does not exercise its option, Actual obtains a put option upon the same terms. Comptec will invest US$6,000,000 into Actual for its operations and reorganization, payable in staged tranches throughout 1998 as follows:
US$1,000,000 payable on or before April 24 1998;
US$250,000 payable on April 30 1998;
US$250,000 payable on May 31 1998;
US$2,000,000 payable upon closing on July 1 1998; and
US$2,500,000 payable on October 1 1998.
Comptec, in consideration for the infusion of monies into Actual, has obtained bank debt for Actual with the First Austrian Bank upon favourable terms.
Comptec is immediately carrying out its due diligence and arranging for an evaluation of Actual, which includes its subsidiaries in the US, Great Britain, France and the Czech Republic.
Comptec has already purchased 55% of Technoplast Kunststofftechnik GMBH, a company of a similar industrial profile. The two companies historically have been strong competitors. The purchase of Actual is strategically advantageous in that an association and consolidation of the two companies will now create an entity with an approximate annual sales of C$100,000,000. Both companies have traditionally suffered from squeezed profit margins as a result of their competition. Comptec estimates that in approximately 40% of the world market, Actual and Technoplast have been the only competitors for their products. Comptec anticipates that following this acquisition and reorganization, not only should margins improve, but costs of operations in the two companies should significantly reduce.
As a result of this acquisition, Comptec, through the combination of Technoplast and Actual, is now one of only two major players worldwide in this highly technical and specialized industry.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com |
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