Ingram puts down $2M deposit for Vantex

Ingram Micro has paid a deposit of $2 million, which is refundable if the conditions are not satisfied. 

The balance of the consideration is payable in cash, with an escrow amount of $2 million being set aside for a period of 12 months to support any warranty claims following completion.

ProvencoCadmus Limited and relevant subsidiaries have signed a conditional sale agreement with subsidiaries of US listed Ingram Micro to sell the business of the Vantex division.

In a statement to the NZ stock exchange, ProvencoCadmus said the sale was significant step in the recapitalisation strategy as advised to shareholders, with proceeds to be applied to reduce its bank debt.

However the deal is conditional on certain third party approvals including shareholder approval.

Also there's to be no material change in the financial condition or operation of the Vantex business prior to completion of the sale.

 Ingram must also receive notice in writing from the Australian Competition and Consumer Commission that it will not object to the acquisition.

The conditions are expected to be satisfied prior to 31 May 2009 with completion occurring two business days following satisfaction of conditions.

Shareholders will be sent a notice of meeting in early May setting out details of a special meeting of shareholders to approve the sale.

The Board is continuing to progress the company's  recapitalisation strategy and further announcements will be made in due course.