Wednesday 19th June 2002
I am pleased to announce a significant development that will result in the expansion of our business activities.
Following discussions between the directors of ISIS Communications Limited and the shareholders of AAV Australia Pty Limited, ISIS has agreed in principle to a proposed merger of ISIS and AAV. The proposed merger will be achieved through ISIS acquiring AAV for the issue of ISIS shares. When the merger is finalised, AAV shareholders will have 68% of the enlarged business.
The merged companies will provide a more complete range of services to a wider client base and will provide a platform for the further expansion of the enlarged company. The proposed business will eventually result in a significant global digital media services group. Our expansion in the next financial year will also be enhanced by a recently signed Heads of Agreement to acquire a Sydney based visual effects and animation business. I will be in a position to announce details of this acquisition to you shortly.
The proposed merger between ISIS and AAV is subject to a number of regulatory conditions, including due diligence and formal approval by the shareholders of both companies which should be completed by mid August.
The expansion of our business has been made possible by the vision and strength of our major shareholders, Investec Australia Ltd (IAL) and MGB Equity Growth Unit Trust (MGB). IAL and MGB are both part of the global Investec group, a banking and financial services group with assets under administration in excess of AU$125 billion.
Over the past twenty-eight years the AAV businesses have grown to become market leaders. We are renowned for the quality and creativity of our services and for the firm focus we continue to maintain on client service excellence. This achievement is due in no small way to the calibre of our people and our commitment to client service excellence at all levels.
I want to take this opportunity to thank each of you for your support and as we take up these expansion opportunities, I would like to impress upon you the importance of maintaining our vigilance with regard to client service at every level.
Ross Cartledge, Peter Colby and I look forward to continuing to drive the merged businesses into the next phase of consolidation.