Posts Tagged ‘OPUS Group’

  • Opus not avoiding taxes: Celarc

    CanPrint’s production facility at Nyrang Street, Fyshwick, ACT.

    Opus Group executive chairman Richard Celarc has said that the company’s re-domiciling to Bermuda and relisting on the Hong Kong stock exchange is not an attempt to avoid paying taxes in Australia.

    Richard Celarc.

    In a statement to Print21, Celarc said Opus will continue to meet its Australian tax obligations. “The proposal outlined in our June 15 announcement to the ASX is not a tax avoidance scheme. Opus has paid and will continue to pay full tax to the Australian government under the three operating subsidiaries – McPhersons Printing Group, Ligare Pty Ltd, CanPrint Communications Pty Ltd,” he said.

    Celarc will remain the largest individual shareholder, and Lion Rock Group the majority shareholder in the company. “Since Lion Rock Group took majority control of Opus in 2014, approximately A$7 million has been spent on upgrading capacity and equipment. Significant capital investment will also be spent in the coming two years.”

    According to Celarc, the move will allow the company to invest further in its machinery and facilities. “Opus Group has reached a point where significant investments for machinery upgrade and plant consolidation are needed,” he said. “Therefore, a move of its listing to Hong Kong where investors’ interest in the printing sector is stronger will help Opus Group’s fund raising in the future.”

    Shareholders are expected to vote on the scheme in early September. If successful, the plan will see Opus delist from the ASX and re-domicile to Bermuda, and a new company called Left Field Printing Group Limited (TopCo) list on the Hong Kong stock exchange.

  • Opus to exit ASX in expansion plan 

    CanPrint’s facility at Nyrang Street, Fyshwick, ACT.

    The Hong Kong owners of ASX-listed Opus Group – which includes Australian printers Ligare, CanPrint and McPherson’s – have laid out a radical business restructure proposal to delist from the Australian Stock Exchange, ‘re-domicile’ the company from Australia to tax haven Bermuda and apply for a listing on the Stock Exchange of Hong Kong.

    The plan, revealed in an announcement to the ASX, includes the expansion of its existing Australian printing businesses.

    Opus Group Limited has entered into a Scheme Implementation Agreement under which it is proposed that Opus will re-domicile from Australia to Bermuda and list on the Main Board of the Stock Exchange of Hong Kong.

     The re-domiciliation is proposed to be implemented by a scheme of arrangement under which Opus shareholders will exchange their securities in Opus for securities in a newly incorporated Bermudan entity, Left Field Printing Group Limited (TopCo) on the basis of three TopCo shares for every one Opus share. Once the listing approval from the HKEx has become unconditional, TopCo will list on the HKEx and Opus will be delisted from the Australian Securities Exchange (ASX).

    ‘We are planning for an expansion’: Opus chairman Richard Celarc.

    The board of Opus has recommended that all Opus shareholders vote in favour of the scheme and declared a special dividend of 13 cents per share. Shareholders can receive the dividend in the form of Opus shares or cash.

    “Our business objective is to retain our position as a leading one stop print and services provider in Australia, including end-to-end printing solutions and services,” Opus executive chairman Richard Celarc told Print21. “We will continue to maintain investment in key machinery and equipment to enhance our production capabilities, expand and streamline our printing and warehousing facilities; and grow our business strategically through merger, acquisition and business collaborations.

    “We are planning for an expansion and streamlining of our printing and warehousing facilities in CanPrint, which will enable us to provide end-to-end printing solutions and services to our customers.  We are also planning to increase our production capacity and efficiency by purchasing suitable machinery, including digital print presses and binding machines.”

    Celarc says the ‘re-domicile’ scheme will allow shareholders to take advantage of higher market liquidity, increased trading and investment activities and expected uplift in the company’s market capitalisation, as well as increasing the ability to attract strategic investors and improve fiscal efficiencies.

    In its application to the HKEx, the Opus board provided an overview of the business and outlined plans for the expansion of its local printing operations.

    Our printed products include read-for-pleasure books, government printed matters, quick turnaround time education books and catalogues, operating manuals and promotional leaflets. According to the Frost & Sullivan Report, in terms of revenue generated in 2017, we are the largest government segment printing services provider within the large commercial printing industry in Australia (ranking fifth largest in the overall commercial printing sector in Australia) and the largest printing services provider in the book printing industry in Australia.

     The size of the commercial printing industry for enterprises and government segments as well as the book printing market in Australia is expected to continue to grow, which will continue to benefit or group’s future prospects.

    Ligare book printing and publishing, Sydney.

     For each of the last three years, the company’s revenue was $80.7 million, $87 million and $79.2 million and profit after tax was $7.2 million, $5.5 million and $5.7 million. Ligare, CanPrint and McPherson’s were equipped with 17 major printing presses and binding machines as at 31 March 2018 and more are on the way. 

    We schedule to purchase additional machinery in order to expand our production capacity. Such purchases will include one additional new digital printing press and three binding machines. We also propose to purchase replacement machinery in order to enhance our efficiency including three digital printing presses, two binding machines and one pre-press machine…we also propose to purchase additional warehousing equipment to cope with our expansion in production capacity…the total expenditure to purchase such machinery and equipment is estimated to be approximately [redacted].

    The company also floated the possibility of relocating its government printing specialist CanPrint.

    The current set up and arrangement of our machinery and equipment within our production facilities may not be organised in a manner which allows us to operate at an optimum level of efficiency and effectiveness…management would consider a potential relocation or reorganisation of our CanPrint facility under a single production and warehousing facility to accommodate the expected expansion of capacity and streamline our business.

    Opus shareholders are expected to vote on the scheme in early September 2018. If they agree with the plan – and if the company receives listing approval from the HKEx – Opus Group will be re-domiciled to Bermuda, TopCo will list on the HKEx and Opus will be delisted from the ASX within the fourth quarter of 2018.

    update:

    Celarc emphasised that the printing businesses of Ligare, CanPrint and McPherson’s will continue to be proud local employers providing Australian made products and services and meeting all Australian regulatory requirements and obligations. 

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