The Directors of Western Australian company Joyce Corporation have announced they will proceed with the acquisition of the Bedshed group.
The Directors of Western Australian company Joyce Corporation have announced they will proceed with the acquisition of the Bedshed group.
As previously foreshadowed, Joyce will move to purchase the remaining 51 units of the Bedshed Unit Trust that Joyce does not already own.
The Directors believe that acquiring control of Bedshed, in exchange for financial support to underpin Bedshed's expansion plans, will complement the future direction of Joyce as well as providing projected returns well above benchmark levels.
Directors have obtained an independent expert's report (attached) that indicates the consideration contemplated for the acquisition of up to 51 units in Bedshed is "fair and reasonable to shareholders". In addition, the report indicates that the value of the units, based upon projected returns, is significantly higher than the cost of the acquisition.
A COPY OF THE LETTER TO SHAREHOLDERS ON THE MATTER APPEARS BELOW.
7 March 2006
Dear Shareholder,
Re: Acquisition of Units in the Bedshed Unit Trust
As previously foreshadowed it is the Directors' recommendation to acquire all or part
of the 51 units in the Bedshed Unit Trust that Joyce does not already own.
The Directors believe that acquiring control of Bedshed, in exchange for financial
support to underpin Bedshed's expansion plans, will complement the future direction
of Joyce as well as providing projected returns well above benchmark levels.
Directors have obtained an independent expert's report (attached) that indicates the
consideration contemplated for the acquisition of up to 51 units in Bedshed is "fair
and reasonable to shareholders". In addition, the report indicates that the value of
the units, based upon projected returns, is significantly higher than the cost of the
acquisition.
An explanatory memorandum setting out more detailed aspects of the acquisition is
also attached.
Shareholders will be asked to vote at an Extraordinary General Meeting to be held
on 6 April 2006 to consider the proposed acquisition.
As an independent Director of Joyce on this matter I recommend acceptance of the
Proposal and would advise that Messrs Smetana and Ries have not participated in
the formalities of the proposal but have indicated that if shareholders support the
acquisition they will sell their units in the Bedshed Unit Trust.
I commend the proposal to shareholders.
Yours faithfully,
Frank van Gogh
Director
