New Zealand Stock Exchange Announcement From Blue Star

New Zealand Stock Exchange Announcement From Blue Star Group Holdings Limited (Blufc) Blue Star Announcement

As previously announced on 29 June 2012, the Board of Blue Star Group, with the support of its major shareholder, has been conducting a review of the Group’s operations, focusing on a potential sale of the business. In light of this review the Board has now appointed Goldman Sachs to undertake a sale process for the Group, either in whole or in parts, on a going concern basis and with continuing support from its Senior Lenders.

The Company also announces the retirement of director Roger France from the Board, effective from 1 August 2012. Mr France has stated in his letter of retirement that, “the sales process contemplated in the release to the NZX on the evening of 29 June, which I fully approve, is now well established with the support of the group’s bankers and with sales advisors appointed.

Given the experience of the other directors the sale process will be well managed and in these circumstances it is timely and appropriate that I retire.” The Company’s Chairman Nick Greiner said that the Board thanked Mr France for his significant contribution over the past 5 years.

Blue Star is currently in the process of preparing its financial statements for the year ended 30 June 2012. While the underlying divisions all continue to trade profitably at an EBIT level, and the Board believes the Company has performed well relative to the wider print market, the Group financial performance remains well below the forecast profitability signalled in the Capital Bond Amendment document.

In light of the sale process, the Board is unsure whether any value will attach to the Group’s NZDX listed bonds (code BLUFC).

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