Members of the Hannan family - which underwrote the entitlement offer announced in May - have snapped up $10.7 million-worth of the available $11 million new shares in Australia's Ovato, to which they have the opportunity add through the retail offer.
Michael Hannan and the Lindsay Hannan Family Trust are behind the family's transactions, which take advantage of the former PMP company's need for cash as print sales fall ahead of a new press installation.
The announcement was accompanied by news that Ovato expects print revenues for 2019 to be down 12 per cent, and EBITDA to fall to $30-$33 million (from $37-$40 million). Masthead closures, a shift to coldset printing, increased competition in publishing, and softer retail conditions associated with the NSW and federal elections are blamed.
The retail part of the $15.5 million share offer is yet to be announced; the Hannans previously held 40.63 per cent of Ovato.
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