CSG announces proposed acquisition of Konica Minolta Business Solutions NZ Ltd

CSG Limited (“CSG”) announces it has entered into an agreement to acquire a 90% interest in New Zealand's market leading print services business Konica Minolta Business Solutions New Zealand Limited (“KMBS”) for NZ$107 million (A$84 million) and 100% of Leasing Solutions Limited (“LSL”) for NZ$25 million (A$20 million1) (“the Acquisitions”).

The acquisitions are subject to various conditions which are set out in the Annexure to this announcement. CSG will fund a portion of the Acquisitions through a fully underwritten institutional placement of new shares in CSG (“New Shares”) to raise approximately A$65 million (“Offer”), subject to the required shareholder approval.

The proceeds of the Offer, in conjunction with A$23 million of committed debt, will be used to fully fund the acquisition of KMBS. A vendor note will be provided to fund the acquisition of LSL which CSG intends to repay using debt prior to 30 June 2010.

Full ASX announcement and annexure to announcement