Carter Holt Harvey backs Straightedge

Carter Holt Harvey backs Straightedge

CHH supports Straightedge Ltd in return of shareholder funds

Carter Holt Harvey today announced that it was working with Straightedge Limited to ensure that current shareholders received back the original issue price of their shares following the announcement today by Straightedge Limited that it was closing its public offer.

The Board of Straightedge Limited today stopped its secondary public offer which means that its intended Key Transaction, the acquisition of Carter Holt Harvey’s Straightedge Division, will not proceed.

Craig Knox, Chief Executive of Carter Holt Harvey New Ventures says while the announcement that Straightedge Limited had closed its offer was disappointing it was a responsible and commendable decision that had been made primarily to protect both investors and shareholders.

“Naturally, in an ideal world, we would have preferred that the capital raising had been successful because the intended Key Transaction, Straightedge Division, is a viable and innovative business that we continue to have full confidence in,” says Knox.

“From Carter Holt Harvey's perspective Straightedge Division remains on track and is set for future growth. However, a combination of a slower ramp up of sales and uncertain capital markets for technology stocks simply means that the timing and environment for a public listing has been difficult at this point in time.”

Nonetheless Knox says that Carter Holt Harvey has fully committed to ensuring that Straightedge’s current shareholders receive back an amount equal to the original issue price of their shares.

“Now that the offer has been stopped our main priority is to work with the Straightedge Board to determine an appropriate mechanism to ensure that the current shareholders receive back an amount equal to the original issue price of their shares as soon as possible.

“We anticipate that a decision by the Straightedge Board on an appropriate means of returning back funds to current shareholders will be made in the next week,” says Knox.

ENDS

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