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IVE GROUP LIMITED Capital/Financing Update 2022

Aug 28, 2022

65109_rns_2022-08-28_fec0bd71-1dfb-4321-84e3-6d47b34d7ac3.pdf

Capital/Financing Update

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ASX RELEASE – IVE GROUP LIMITED (ASX:IGL)

29 August 2022

Execution of Asset Sale Agreement to Acquire Ovato Assets

On 10 August 2022, IVE Group Limited (IVE, ASX:IGL) announced that it had entered into an implementation deed ( Implementation Deed ) with Ovato Limited (Administrators Appointed) ( Ovato ) and the Ovato Administrators under which the parties agreed to progress good faith negotiations for signing of an asset sale agreement pursuant to which IVE would acquire all or substantially all, or a material part or parts of, the printing business or assets of Ovato and its subsidiaries ( Proposed Transaction ).

IVE today announces that it has entered into an agreement to acquire substantially all of the assets of Ovato for a net purchase consideration of approximately $16 million.

The agreement is subject to ACCC clearance and the satisfaction of customary conditions. It is expected the acquisition will complete within 2 weeks should ACCC clearance be obtained.

Current annual revenues of Ovato’s Australian web offset printing operations subject to the acquisition are estimated to be circa $160m. IVE intends to operate Ovato’s WA (Bibra Lake) site, and for a period of approximately 18 months Ovato’s NSW (Warwick Farm) site. Over this period, it is IVE’s intention that the Ovato Warwick Farm operations will be fully integrated into the broader IVE Group.

The acquisition is expected to be accretive to EPS in FY23.

IVE has sufficient cash reserves to fund the acquisition.