As expected, Quarto completed its secondary share offer, raising $16.7 million in net proceeds. They say existing shareholders took 57 percent of the new shares, with the Giunti family taking a significant stake and CK Lau filling the rest of the offer. The Giuntis did acquire 6.2 million shares as planned. (Update: It was confirmed later in a filing at the end of February that Lau acquired approximately 9.4 million of the new shares, boosting the stake he controls to 16.27 million shares, or 39.8 percent of the company.) Separately, Australian online bookseller Booktopia has bought the assets of the […]
Finance
Quarto Turned Down A £20 Million Cash Buyout Offer
Debt-ridden Quarto Publishing turned down a buyout offer from US investor and former hedge fund executive Richard Hurowitz multiple times last year, rejecting his proposals in early October and again in mid-November, the FT reported. Hurowitz offered 100 pence a share, or approximately £20.5 million, and was advised by investment bank Greenhill. Though desperate for funds, Quarto rejected his offer without notifying their public investors. Hurowitz’s offer was — and remains — well above Quarto’s stock price, since the market doubts whether the company is viable. Quarto has roughly $54 million due in bank debt and another $13 million short-term […]
Springer Nature Hires Bankers For Another Try at An IPO
After pulling their IPO on the Frankfurt Stock Exchange at the last minute in 2018 on weak demand, Springer Nature’s owners are determined to try again, hoping that capital markets remain strong long enough for them to get to the finish line this time. Co-owners BC Partners and Holtzbrinck are reported to be working with Goldman Sachs and Morgan Stanley as lead bookrunners (Morgan Stanley led the previous effort as well), “which could take place as early as May or June” according to Reuters’ sources. One of those sources insists that “leverage has come down significantly, making it a much […]
Quarto Needs More Money: Lau Will Take Control In $18.2 Million Equity Raise with Help from Italy’s Giuntis
With $54 million in bank debt and another $13 million short-term loan from major shareholders that’s due in August, Quarto Group needs far more money than it can generate or access. In order to extend their loan for another year, to mid-2021, they need to raise money now or face severe consequences. The latest solution to this long-running intractable problem is that the company plans to recapitalize (and dilute) itself by doubling its share base and offering current shareholders new shares if they kick in 68 pence per share. The offer is designed to raise £13.9 million (of $18.2 million) […]
LSC to Close Three More Plants
With Wall Street viewing printer LSC Communications as a zombie, trading at a market cap of about $7 million, the company announced that they are closing three more magazine and catalog printing plants. The closures are positioned as positive and decisive measures that “will strengthen the Company’s manufacturing platform by significantly reducing costs and improving utilization across LSC’s production facilities.” They are closing plants in Strasburg, VA (approximately 385 employees); Glasgow, KY (about 650 employees); and Mattoon, IL (about 750 employees) as “the company continues to focus on manufacturing footprint optimization to align with industry trends.” The closures are expected […]
French Trade Magazine Plans Big Layoffs
France’s book publishing trade magazine Livres Hebdo announced on December 30 a reorganization that if enacted would eliminate half of their editorial staff (seven out of fourteen people, including four of six editors), according to an online petition launched two days ago. That proposal would be finalized in February. The company says it plans to focus on digital news, and the magazine will become monthly by September. Parent company Electre said in a statement that the changes are needed “in order to adapt to changes in customer demand and restore its economic balance.” An online petition says, “It is to […]