Australian subsidiary of Case Corporation proposes offer to acquire Austoft Holdings Limited.RACINE, Wis.--(BUSINESS WIRE)--Feb. 16, 1996--Case Corporation (NYSE NYSE See: New York Stock Exchange :CSE (Certified Systems Engineer) See Microsoft certification. ) announced today that its Australian subsidiary, Case Corporation Pty Ltd (Case Australia), will make an offer to acquire all of the issued capital of Austoft Holdings Limited, an Australian corporation, for $1.95 AUD AUD In currencies, this is the abbreviation for the Australian Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. per share (approximately $1.46 USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ). The all-cash offer for Austoft would total approximately $80 million AUD (approximately $60 million USD) and will be subject to certain conditions set forth in the offering documents. Following the announcement of the offer in Australia on Friday, Case Australia purchased nearly 15 percent of Austoft's common stock on the open market, the maximum that Case could buy until it receives Australian regulatory approval. Under Australian law, this ownership puts Case Australia in a position to block another company from acquiring Austoft as a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. . Austoft had sales of $69 million AUD for the fiscal year ended June 30, 1995 with operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $12 million AUD. It is the world's largest manufacturer of sugar-cane harvesting equipment. The company is based in Bundaberg, Queensland, and markets its products in 25 countries in Asia, the Americas and Africa, as well as Australia. "Austoft is the industry leader and has a consistent record of profitability. This acquisition would not only strengthen our existing business in Australia, but it would increase our presence in some key emerging agricultural markets," said Jean-Pierre Rosso, Case president and chief executive officer. "We believe there is considerable opportunity through our combined resources to expand distribution and increase unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. worldwide, thereby supporting Case's growth initiative." As part of Case Australia, Austoft would continue to be based in Bundaberg and would have worldwide responsibility for the sugar-cane equipment business, while having access to Case's global distribution network. Case Corporation, with net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of nearly $5 billion in 1995, is a leading worldwide designer, manufacturer and distributor of agricultural and construction equipment. Case Credit Corporation, a wholly owned subsidiary of Case, services a portfolio of $3.7 billion of agricultural and construction equipment financing and leasing contracts. Headquartered in Racine, Wisconsin, Case's products are sold through a network of approximately 4,100 independent dealers and distributors in more than 150 countries. Case Australia is based in St. Mary's, Sydney, and serves as Case Corporation's headquarters for the Asia Pacific region. In 1995, Case Australia had sales of $244 million AUD (approximately $180 million USD). CONTACT: Case Corporation William B. Masterson, 414/636-5793 or Sue Hardman (Australia), 011-61-2673-7772 |
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