Strathmore offers CommSoft shares in buy-back deal

By DANIEL RIORDAN

Telecommunications software company CommSoft Group plans to list on the Australian and New Zealand Stock Exchanges on September 13.

The news was announced yesterday by CommSoft's 38 per cent shareholder, listed technology investor Strathmore Group, which also said it was selling down its investment.

Strathmore, which last month announced it would buy back 15 per cent of its shares, said it would offer its shareholders one CommSoft share for every 4.25 Strathmore shares they sold.

Strathmore will sell $A2 million ($2.6 million) of its CommSoft shareholding into the float, boosting liquidity in the $A17 million ($22 million) offer, which will open on August 15.

CommSoft will list at $A1.10.

Strathmore's shareholding will fall to 14 per cent after the float, sell-down and buy-back. Its shareholders will also receive preferential treatment enabling them to subscribe for CommSoft shares at a rate of one CommSoft share for every 75 Strathmore shares they hold.

Strathmore shareholder NZ Funds Management has offered to pay 11Ac a share for any entitlement shareholders do not take up.

Strathmore chief financial officer Peter Saunders said the company decided to sell down on the request of potential institutional investors.

He said all 40 institutions who attended CommSoft's recent roadshow, on both sides of the Tasman, were keen to invest and Strathmore decided to make more shares available.

Linking the buy-back to the CommSoft listing also gives Strathmore shareholders a greater opportunity to own CommSoft direct.

Institutions were attracted to CommSoft because it was already making profits, had good margins and customers in some of the big PABX suppliers and telcos, and solid revenue streams from high-growth markets, including Europe.