Three weeks ago an unknown bidder put a highly conditional non-binding indicative offer for the purchase of PMP, the region’s largest printing company. Anthony Karam, CEO of label and ticketing printer TMA, is identified as the mystery bidder.
PMP locked down Monday morning under a trading halt, while Karam and co walked into a full day of back-to-back meetings with no comment. PMP's shares jumped 5% when it resumed trading later in the day.
STOP PRESS: PMP issued a statement at noon where it acknowledged the TMA offer. It referred to media reports as triggering its response. The company's share trading halt will continue for another day. TMA has provided funding commitment letters in a form that is customary at this preliminary stage of a potential transaction. The views expressed in the funding commitment letters are preliminary and any funding commitment that may be made in the future is subject to the completion of due diligence to financiers’ satisfaction, credit and other required approvals and documentation.
TMA is no stranger to a takeover having acquired Label Press in 2004 and Cashflow in 2007. Anthony (pictured) and his sister Corienne control around 81% of the company they founded in 1982 and delisted from the stock exchange late-2011.
The takeover announcement sent PMP’s share price flying up to just over 60 cents, more 
than double the dubious levels where it has languished for most of this year. However, since then the market has demonstrated its mistrust in the bid by allowing the share price to drop back to 37 cents at the time of writing.
Apart from the trading halt the only response from the company, posted on the ASX, is that the directors are considering the approach and will keep the market informed of developments. The company has also appointed Gresham Partners, whose PE arm owns GEON, as its financial advisors in relation to the bid.
The bid is for between 0.68 to $0.78 cents per share, which values the company at between $220 million and $252 million, almost twice the value of the business at its current share price. ($123 million)
The company is a good cash cow, turning over $577.5 million for the first half year, but only delivering $8.8 million net profit after tax. Even then significant items, swallowed half of that leaving only $4.6m.
Since the bid was announced, the industry has been in a ferment of speculation as to the identity of the mystery bidder. TMA Group was identified by an industry source on Friday and outed in today’s financial press. Industry observers reckon there has to be PE money funding the deal, possibly from Asia.
TMA employs over 300 people and maintains manufacturing facilities in Sydney, Melbourne, Brisbane, Auckland and Shanghai as well as sales offices in Perth, Manila, Hong Kong and Bangkok. Stay posted for further developments.