NCM company takes opportunity

By FIONA ROTHERHAM

New Capital Market company e-Opportunity has made a takeover offer for Auckland-based technology company Selector Group as flagged in its initial public offer in April.

E-Opportunity was the second company to list on the NCM, established by the stock exchange to make it easier for small companies to access capital. After listing as a shell company, each firm has 18 months to make a key transaction.

Selector shareholders are being offered 15 e-Opportunity shares for each share held. This values Selector at $15.7 million, or $8.25 per share.

This falls in the middle of the range provided by the independent Australian company, Valuetech, a specialist in valuing technology companies.

E-Opportunity listed with two million shares, raising $600,000 from the public and $200,000 from its three directors. It will issue a further 28.6 million shares for the scrip offer to Selector.

Since listing in May e-Opportunity's share price has risen from 50c to 63c per share. The first NCM company, Mowbray Collectibles, is trading at 55c a share, up from its April listing price of 50c.

Selector develops computer software to help in staff assessments and internet recruitment. It has just publicly released e-Profiler following trials on the Wilson & Horton job site and overseas.

PricewaterhouseCoopers said the offer was fair. It is conditional on approval by e-Opportunity's shareholders and acceptances for at least 76 per cent of Selector's ordinary shares.

The offer is being sent to the stock exchange today for approval. Selector's directors intend to recommend shareholders accept the offer.

E-Opportunity director, merchant banker Tony Bishop, is non-executive chairman of Selector. He and fellow director, Glaistor Ennor managing partner Jack Porus, indirectly own Selector shares.