Corporate: Fuji Xerox wants to buy CSG for over $140 million

IT services business CSG (ASX:CSG) is the latest ASX small cap to get a takeover offer.

A +$140m bid was made by a subsiduary of multinational company Fuji Xerox — a joint venture between Japan’s Fujifilm and American printer Xerox — which sells printers and software.

Fuji Xerox’s offer was revealed to shareholders this morning and shares are up over 30 per cent.

The CSG board have unanimously supported the bid as have CSG’s largest shareholder, Caledonia Investments.

“CSG is the ideal strategic fit for Fuji Xerox’s global business with our expertise in IT managed services and office solutions for the SME sector in Australia and New Zealand complementing Fuji Xerox’s leading print and technology operations,” said chairman Bernie Campbell.

“The Scheme provides certainty for our shareholders to realise value at a significant premium.

“It will also provide growth opportunities for our 670 employees within a global and culturally aligned business.”

A vote on the deal will happen in February next year.

In other ASX small cap corporate news today:

The flow of quarterlies is picking up this morning as next Thursday’s deadline approaches.

South-Australian based Clean Seas Seafood (ASX:CSS) declared it was on the right trajectory. Overall sales revenue and volume rose by 17 per cent compared with Q1 FY19 and cash receipts was $11.9 million. The best figure was growth in frozen products which was 141 per cent higher compared with the prior corresponding period. Fish health remained excellent with a biomass of 3,308 tonnes, 8 per cent higher than 12 months ago. Shares edged higher in morning trade.

Also seeing good times is daigou store operator AuMake (ASX:AU8). Revenue was up 42 per cent in the September quarter to $18.5 million and gross profit was up 68 per cent to $3.2 million. Net operating cash flow was positive to the tune of $3.5 million. It credited its acquisitions, particularly Broadway, and the realisation of associated synergies.