SMARTPAY FIRMS UP TIMETABLE FOR ASX LISTING
Thursday, May 05, 2011
10-for-1 Share Consolidation the First Step in the
Process
AUCKLAND, 5 May 2011 - SmartPay (NZX: SPY), a
leading provider of payments and transactional solutions in New
Zealand and Australia, today announced the board has confirmed its
strategy for a listing on the Australian Stock Exchange (ASX).
The company had previously announced it intended to evaluate the
potential of a listing on the ASX and is now able to confirm the
board's intention to list the company on the ASX subject to all
regulatory and necessary shareholder approvals being obtained.
SmartPay already has a significant business in Australia and is
presently increasing its sales and marketing activity through the
deployment of its senior sales executives from New Zealand into the
Australian market which is 6 to 7 times larger than the New Zealand
market.
SmartPay's focus in Australia remains in providing value added
EFTPOS and payment solutions to niche markets such as those
provided to the Live Group with its Taxi Epay solution and the
recently announced agreement with Generate Group for the club
market in Australia. The company already has an installed base of
over 15,000 terminals in the Australian market.
The listing on the ASX is designed to improve stock liquidity
for shareholders, open up the opportunity for the company to be
introduced to new shareholders and to provide the company with
access to larger scale capital markets which will assist with the
planned growth of the company.
"P/E Multiples on the ASX for companies such as SmartPay are
typically between 10 and 14, while SmartPay remains at around 5 on
the NZSX," says SmartPay Chairman Wayne Johnson.
"Making an ASX listing is important to increasing shareholder
value. As part of this process we have already met with a number of
brokers in Australia who are showing interest in supporting the
stock which should result in improved liquidity in the larger
Australian market".
SmartPay's listing will be a full listing, comprising of a
prospectus and full application to the ASX for access to the main
board. SmartPay's current intention is to maintain dual listings
with the New Zealand and Australian exchanges. One of the
conditions to listing on the ASX is that the company's share price
is at least A$0.20c. In order to assist the company to meet this
condition the company will undertake a share consolidation at a
ratio of 10 to 1, reducing the number of shares on issue to around
120 million. Overall shareholder value can be expected to be
maintained as the share price should increase relative to the
consolidation.
The company is finalising the process with its legal counsel in
New Zealand and Australia and is in talks with several broking
firms contending to support the company pre and post listing on the
ASX.
It is expected that the listing process will be progressed as
soon as the company's audited accounts are released to the market
and is targeted to be completed by the end of August 2011.
The indicative timetable for SmartPay Limited's ASX
listing is as follows:
20 May - 10-for-1 share Consolidation
End May 2011- Announcement of Full Year results ending March
2011
29 July 2011 - Application to List lodged with the ASX and
Prospectus lodged with ASIC
Mid August 2011 - Conditional listing approval from the ASX
End August 2011 SmartPay Limited Listed on the ASX
ENDS
For further information contact:
Ian Bailey, Managing Director, SmartPay, Mobile +64 21 664
941
Wayne Johnson, Chairman Smartpay Mobile +61 411 544 449
Andrew Donaldson, CEO, SmartPay +64 27 255 4682
Brenda Newth, JML Communications, +64 21 655 534
About SmartPay Limited
SmartPay is a leading provider of integrated merchant services
utilising the Internet and broadband connectivity.
SmartPay's product set includes:
- Telecommunications products and services including Voice Over
IP, Broadband, EFTPOS terminals and secure EFTPOS internet
connectivity
- Audio and video, music, messaging and media via its Retail
Radio product set.
- Prepayment products and transactional processing services for
the taxi industry.
SmartPay Core Products include:
•
Wi-Fi - one of the largest networks in New Zealand
•
In-store Audio Visual Promotional Systems - Retail Radio
•
Internet enabled EFTPOS equipment sales and rental
•
Gift Cards
•
Secure Internet Payments
•
Mobile Top-up
•
Calling Cards
•
Bill Payment Solutions
•
Voice over IP (VOIP)
•
Online Payments
For more information visit - www.smartpayltd.com