BlueFreeway taken private by Hannan family

The wealthy Hannan family has confirmed it will take listed digital marketing group BlueFreeway private, after agreeing to buy out minority shareholders for 4c a share.

Michael Hannan’s company IPMG Administration, which already owns 73% of BlueFreeway, announced yesterday it has secured the support of BlueFreeway’s only independent director Nick Greiner for its buyout proposal.

Hannan grabbed control of BlueFreeway early last year and has sunk more than $35 million into the company in an attempt to turn it around. When Harran arrived, the company was essentially a portfolio of more than 20 separate businesses and was battling with management problems. Over the last 12 months, head office and marketing costs have been slashed and a number of businesses have been sold off.

But a number of big problems remained, including earn-out clauses that had been negotiated at the top of the market, increasing bad debts, and an “uncomfortable level of debt and covenants that leave little flexibility”.

BlueFreeway breached these covenants on 28 February. Under the terms of the takeover deal, IPMG will assume $27 million of debt previously held by the company’s main lender, NAB.

Following shareholder approval of the deal, BlueFreeway is likely to be delisted in late June or July.

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