Moore Australasia Holdings has announced the sale of its Western Australia business to Melbourne-based private company Fraser and Jenkinson, which trades as Print Media Group.
The WA business was sold for $450,000 and did not include debtors or stock which will be collected and sold by Moore.
Moore, which provides software development, data management and print logistics, has seven offices around Australia but said it decided to sell its WA business to concentrate on its east coast activities.
The company is currently going through a restructure following the loss of its major customer Tabcorp.
It said it would downsize by reducing its board from four to three directors, amalgamate the role of chief executive and chief financial officer, close its Wodonga facility and terminate 25 per cent of its staff nationally.
Print Media Group is Moore's largest shareholder, owning 41.9 per cent of the current issued capital in the company.
Print Media Group's business dates back to 1892, when Mr John Fraser and Mr Thomas Jenkinson became partners in Fraser & Jenkinson Printers and Publishers.
Moore advised that:
- The sale was initiated by the independent directors;
- The benefit to Moore Australasia is not only the cash it received from the sale of the WA business but also avoiding the costs that it would otherwise incur in relation to the move from its current premises and the setting up of new warehouse facilities in Perth; and
- The consideration was determined by the independent directors as being appropriate and was a result of arm's length negotiations.
