CSG and Fuji Xerox enter court over terminated agreement
Fuji Xerox has issued court proceedings against CSG to determine if the termination was valid
Fuji Xerox has issued proceedings against the ASX-listed provider (ASX:CSV) in the NSW Supreme Court to determine whether the termination was valid and the obligations of both parties post termination.
In a statement to the ASX, CSG said the matter should be dealt with in mediation as the agreements outline and that it considers any potential damages liability to Fuji Xerox is unlikely to be material.
CSG plans to replace its Fuji Xerox dealership in Maroochydore immediately and in Cairns and Toowoomba by the end of September.
In addition, CSG will also become a Develop dealer in Maroochydore. Develop is an international brand manufactured by Konica Minolta and distributed in Australia by Imagetec Solutions.
CSG Managing Director, Denis Mackenzie said the extended agreement would significantly increase the number of machines and customers it would service.
“CSG will continue to service all non-Canon customer machines in Brisbane and Maroochydore under the terms of the many thousands of service agreements we have in place,” Mackenzie said.
In May, CSG announced its $31 million Canon agreement to service Sydney, Melbourne, Canberra, Adelaide and Perth with sub-contractor rights over 10,500 multifunction devices.
Author: Julia Talevski (ARN)
26 August, 2010
More on this story Denis Mackenzie Trial
Why is the CSG share price rocketing higher?
The catalyst for today’s impressive share price gain was news that CSG and Fuji Xerox have entered into a scheme implementation deed.
Under this deed it is proposed that Fuji Xerox will acquire CSG for a cash consideration of 31 cents per share by way of a scheme of arrangement. This remains subject to shareholder and court approval.
This offer values CSG’s issued equity at $140.8 million and enterprise value at $181.6 million. The release explains that the transaction will be funded from Fuji Xerox’s existing cash reserves.
According to the release, each member of the CSG board recommends that shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert concluding that the offer is in their best interests. From https://www.fool.com.au/2019/10/24/csg-share-price-rockets-30-higher-on-fuji-xerox-takeover-approach/