MEDIA RELEASE 23 November 2005
BBX to expand to overseas markets
ASX listed barter exchange company BBX Holdings Limited (“BBX”) has recently
announced plans to expand into overseas markets, with confirmation that the
company has entered into a Heads of Agreement to establish a BBX Master
Franchise in the Peoples Republic of China.
This follows an earlier announcement that BBX is currently in discussion with a
number of overseas parties with the objective of forming a global trading
alliance underpinned by a common cashless exchange mechanism.
BBX’s intention is to establish an alliance that would initially cover
Australia, the United States, New Zealand and China with approximately 80
offices. The alliance would mean that members of BBX would have the potential to
transact with members of other exchanges around the world, using a common unit
The Master Franchise Agreement in China is based on a term of 20 years with the
option of two additional terms of 10 years each. The franchise will be
headquartered in Beijing.
BBX is currently in discussions that may see the China Master Franchisee acquire
up to 15% interest in BBX Holdings initially, with a further 10% under option.
Mr Michael Touma, Managing Director of BBX Holdings says this is a significant
move forward for BBX and its members.
“The company recognises that China is a market with enormous potential, but
nevertheless we have moved into this new market with a full understanding of its
conditions,” said Touma.
“The fact is that China’s economy is one which lends itself well to a trade
exchange, as there is considerable potential for businesses in this environment
that encounter idle capacity and excess stock issues to utilise a barter
exchange as an alternative means of distribution.
“There is also very good potential for relations between Australian and Chinese
businesses in terms of reciprocal trade arrangements and in terms of providing
easier access to goods and services in each of our markets,” said Touma.
BBX Holdings Limited listed on the Australian Stock Exchange on 12 August 2005.
27.7 million shares were quoted, at an issue price of 25 cents. BBX is
Australasia’s first publicly listed trade exchange manager, with offices across
Australia and New Zealand.
Released for BBX by Dennis Rutzou Public Relations.
For further information contact Dennis Rutzou
or Fiona Pennington on (02) 9413 4244.