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CSG enters trading halt

CSG enters trading halt

Public announcement expected today

ICT consulting company, CSG (ASX:CSV), has entered a trading halt pending an announcement to the market in connection with a proposed transaction.

Unless the ASX decides otherwise, the securities will remain in a trading halt until the earlier of the commencement of normal trading on Thursday, May 31, or when the announcement is released to the market.

However, the company is expected to make the annoucement before the commencement of normal trading tomorrow.

The halt comes a week after a Change In Substantial Holding was filed to the ASX by Caledonia (Private) Investments Pty Ltd & Its Associates.

Caledonia, which held 41,138,720 ordinary shares in the company giving it a voting power of 14.56 per cent, notified it acquired a further 5,890,455 shares takes its voting power to 16.64 per cent.

Sydney-based Caledonia (Private) Investments Pty Limited is a privately owned investment manager. The firm primarily provides its services to individuals and families.

It manages separate client focused equity portfolios and investment funds for its clients.

The firm invests in the public equity markets across the globe. It seeks to invest in the growth oriented value stocks of companies across all market capitalization.

CSG previously entered a trading halt on April 14, 2011, as it sought to raise $40 million in new equity.

It planned to do this through a fully underwritten institutional placement where it planned to raise $10 million and non-renounceable accelerated pro rata entitlement offer to produce about $30 million.

On September 29, 2011, ARN reported that CSG had received a confidential off-market takeover proposal from an unnamed company.

In a statement to the ASX, the company said the proposed price stood at $1.20 cash per share with no adjustment for the final dividend of $0.003 per share to be paid on October 4.

The bid was valued at $340 million at the time.

On October 7, 2011 it advised it had received new takeover interest.

Nothing more was heard of either bid.

On January 31, 2012, CSG announced it had a new managing director when Denis Mackenzie stepped down and was replaced by group general manager for the technology solutions division, Julie-Ann Kerin.

Mackenzine was a 16-year veteran of the company, the last 11 years of which he served as managing director.

In the 2010/11 financial year, CSG posted a solid result despite facing a challenging year with natural disasters in Queensland and New Zealand along with the Fuji Xerox court case having a one-off impact on its results.

Despite this, it managed to increase its group revenue 39.9 per cent to $388.6 million and net profit reached $40.4 million, an increase of 26.2 per cent.

EBITDA increased 18.5 per cent to $70.3 million on the previous year, but adjusted EBITDA totals $69 million, which includes one-off legal fees of $1.8 million and $2.6 million related to business disruption and integration expenses in the Canon acquisition.

At close of trading on May 28, CSG shares were trading at $0.63.


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