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MCS SERVICES LIMITED — Capital/Financing Update 2014
Jul 8, 2014
65377_rns_2014-07-08_eeb75d0d-9a4c-421e-80d2-72949737a473.pdf
Capital/Financing Update
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9 July 2014
ASX: RGX
ASX Market Announcements Australian Securities Exchange Limited 20 Bridge Street Sydney NSW 2000
HOLIDAY PLANET SHARE SALE AGREEMENT SIGNED
The Directors of Red Gum Resources Limited (ASX : RGX; “ Red Gum” or “the Company” ) are pleased to announce that it has now signed the Share Sales Agreement to acquire 100% of the issued capital of Perth based Holiday Planet Pty Ltd as part of a travel business aggregation strategy as it shifts focus away from the resources sector. Share sale agreements are expected to be signed shortly with Asia Escape and Motive Travel both of which have also entered into Heads of Agreements for their acquisition by Red Gum.
HIGHLIGHTS
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This acquisition, together with the acquisition of Motive Travel and Asia Escape once approved by shareholders, will create the largest independent, internet travel and leisure company based in Western Australia (the Australian Travel Group ).
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Combined annual turnover of the Australian Travel Group – based on latest year figures of Holiday Planet, Asia Escape and Motive Travel exceeds $85 million.
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Formation of the Australian Travel Group will create significant operating synergies which are anticipated to provide additional short to medium term profit drivers.
Settlement of the Holiday Planet Share Sale Agreement is subject to a number of conditions precedent including shareholder approval, which will be sought as part of the Company’s intentions to move into the internet platform tourism and leisure sector. Red Gum is currently preparing a Prospectus and capital raising as part of relisting as the “Australian Travel Group”.
Dr Shaw, Chairman of Red Gum, in welcoming this agreement, noted that the Board is fully committed to having the two remaining share-sale agreements for Asia Escape and Motive Travel signed in the short term.
For further information please contact:
Ray Shaw, Executive Chairman, +61 8 8223 1681
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