Cadmus shareholders back Singapore deal

By ADAM GIFFORD

Shareholders of listed Eftpos-terminal manufacturer Cadmus Technology have approved a plan for Singapore company CET Technologies to buy a 9.9 per cent stake for $1.2 million.

The offer is equivalent to 7.5c a share, which was the average price in the 35 days before the deal was struck in August. The shares were trading at 13.5c yesterday.

About 40 shareholders were on hand at the annual meeting in Takapuna yesterday to hear how the company had survived the technology sector downturn and was positioning for growth.

Chairman Keith Phillips told the meeting that the CET deal cemented a strategic alliance which should help Cadmus sell its terminals in Asian markets.

CET, a subsidiary of listed systems integrator Singapore Technologies Engineering, provides fleet management services and in-vehicle terminals for more than 20,000 vehicles worldwide. It also makes wireless products for mobile workers.



Shareholders also ratified the issue to Trustpower of 6.9 million shares at 7.5c, to buy Trustpower out of their POS Power joint venture.

Phillips said that owning 100 per cent of the POS Power technology, which allows bill payments to be made through the electricity meter, meant Cadmus could better market the technology overseas.

Shareholders were concerned about an option held by JBWere Private Equity, which still has a month to run.

Under a complicated deal done last year just after the company had reported an $18 million loss, JBWere bought an 8.85 per cent stake for $1 million or 6.5c a share. It still has a call option allowing it to buy another $1 million of shares at 8.5c.

Commercial director John Nimmo said the deal was a product of its time.

Philip Joe, JBWere's director on the board, said he was put there as an independent and could not say what JBWere's plans were for the option.

Over the year an increase in export sales boosted Cadmus revenues 116 per cent to $13,278,000, giving an after-tax profit of $406,000.

Managing director Ian Bailey said Cadmus could hold its own against multinationals such as Hypercom, Verifone and Ingenico because it could quickly customise its terminals and software to service niche markets.