Cabletalk sells down its share in Codeblue

2.45pm

Telecommunications firm Cabletalk today confirmed it had sold down nearly two-thirds of its stake in information communication technology company CodeBlue.

Cabletalk had owned 100 per cent of CodeBlue, but now holds just 37.5 per cent after selling the balance to private investors.

Managing director Peter Wilson declined to reveal the price of the 62.5 per cent stake it sold, citing commercial sensitivity.

But he said the sell down "better reflects the development nature of that operation and the priority Cabletalk Group is now placing on growth by acquisition."

The change would also free-up management time and financial resources within Cabletalk, Mr Wilson said in a statement.

These would be applied to "acquire established businesses that capitalise on our core strengths of providing responsive technical services."

Mr Wilson also said Cabletalk's goal to have $5 million in the bank at the end of September, after repaying all debt, had been achieved.

At an ebitda (earnings before interest, tax, depreciation and amortisation) level Cabletalk was tracking "significantly" ahead of the last financial year, he said.

The company was increasingly benefiting from what it called efficiency improvements over the past 12 months.

At 1.45pm, Cabletalk shares were unchanged at 50c, having ranged between 16c and 55c in the past year.

- NZPA