VOCUS TO SELL NEW ZEALAND BUSINESS

VOCUS TO SELL NEW ZEALAND BUSINESS

AUSTRALIA'S fourth largest telco is planning to sell its New Zealand business by the end of June 2018 in a move designed to reduce its debt and provide "strategic options".

Following a review into the potential divestment of non-core assets the company said today in a trading update that it is looking to sell Vocus New Zealand during the current financial year.

The group's Australian Data Centre assets are also up for grabs now that the company has appointed advisers for the sale of those assets.

The New Zealand business is valued at around $400 million, and Vocus (ASX: VOC) will be welcoming an injection of cash, considering the group reported a $1.46 billion annual loss for FY17.

Following the mammoth full year loss, chairman of Vocus, David Spence, stepped down from his position.

The devastating loss was the result of heavy write downs on goodwill for some more recent acquisitions, and resulted in shareholders not seeing a cent in dividends.

The cash reserves might also be useful in the instance a class action law suit goes sour. In September Slater & Gordon announced its investigation into a class action claim against Vocus.

The claim alleges that Vocus had no reasonable grounds for its original 2017 financial guidance, issued in November 2016.

In October, Vocus appointed former M2 boss Vaughan Bowen and former Telstra chairman Bob Mansfield to lead a board tasked with turning around the business.

Shares in Vocus, which owns telco brands Dodo, iPrimus and Commander, saw a boost from this morning's announcement and are currently trading up 1.78 per cent to $2.86.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

 
Finexia’s Childcare Income Fund secures ‘very strong’ rating from Foresight Analytics & Ratings
Partner Content
Private credit specialist Finexia Financial Group (ASX: FNX) has secured a “very...
Finexia
Advertisement

Related Stories

Nicholas Bolton's Keybridge becomes majority owner of Yowie

Nicholas Bolton's Keybridge becomes majority owner of Yowie

Despite a recommendation from the independent directors of confecti...

‘State of war’: the battle behind the scenes that led to a second inquiry into The Star

‘State of war’: the battle behind the scenes that led to a second inquiry into The Star

A siege mentality that amounted to a “state of war” bet...

Global conflicts spark surge in revenue for Sydney defence-tech DroneShield

Global conflicts spark surge in revenue for Sydney defence-tech DroneShield

With $400 million worth of annual hardware production value in mark...

NEXTDC secures $937 million from institutional offer

NEXTDC secures $937 million from institutional offer

NEXTDC's (ASX: NXT) massive raise to speed up the development a...