blacksheep
07-07-2004, 12:56 PM
Pure Fruits To Peel Off 'Bills'
By Gabrielle Costa For The Age Jul 5 2004
Listed fruit-processing company Australian Pure Fruits [ASX: AFL 140c] will spin off its growth-driving bill payment and telephony credit division in an effort to separate the divergent businesses and fund further expansion.
In an announcement to the Australian Stock Exchange, AFL said comany directors would split the two businesses. In a separate explanation, AFL said it planned to compete with Australia Post which dominates the bill-paying market.
AFL will retain about 46% of the new Bill Express company, with existing shareholders and the retail outlets that act as shopfronts for the company's bill-paying and prepaid telephony services given priority in the new share issue. The new stock will be offered at 20c apiece.
The company plans to raise $35M to fund Bill Express expansion and has forecast a total 2005-06 dividend payout from Bill Express of $2.5M.
Director Peter McDougall said that the spin-off was set to take place because of the potential for growth in the bill payment and prepaid telephony markets.
The company has predicted that revenue from the newly-listed Bill Express will rise from $310M in 2003-04 to $618M in 2004-05.
Over the same period it says net profit is likely to climb 96% to $5.3M.
The Bill Express division has been the main growth driver at AFL in the past financial year.
David Halliday, an associate at Macquarie Equites, which will play a part in the distribution of the new shares, along with other brokerage houses, said that the Bill Express division was a compelling story. "It gives it a clearly identifiable tangible value," he said.
By Gabrielle Costa For The Age Jul 5 2004
Listed fruit-processing company Australian Pure Fruits [ASX: AFL 140c] will spin off its growth-driving bill payment and telephony credit division in an effort to separate the divergent businesses and fund further expansion.
In an announcement to the Australian Stock Exchange, AFL said comany directors would split the two businesses. In a separate explanation, AFL said it planned to compete with Australia Post which dominates the bill-paying market.
AFL will retain about 46% of the new Bill Express company, with existing shareholders and the retail outlets that act as shopfronts for the company's bill-paying and prepaid telephony services given priority in the new share issue. The new stock will be offered at 20c apiece.
The company plans to raise $35M to fund Bill Express expansion and has forecast a total 2005-06 dividend payout from Bill Express of $2.5M.
Director Peter McDougall said that the spin-off was set to take place because of the potential for growth in the bill payment and prepaid telephony markets.
The company has predicted that revenue from the newly-listed Bill Express will rise from $310M in 2003-04 to $618M in 2004-05.
Over the same period it says net profit is likely to climb 96% to $5.3M.
The Bill Express division has been the main growth driver at AFL in the past financial year.
David Halliday, an associate at Macquarie Equites, which will play a part in the distribution of the new shares, along with other brokerage houses, said that the Bill Express division was a compelling story. "It gives it a clearly identifiable tangible value," he said.