Cube Capital plan on hold

Cube Capital's transformation into an IT business is on hold, after it pulled the plug yesterday on a conditional purchase of a group of IT companies from JP & BM Holdings.

The company said it could not reach an acceptable "value proposition" from the deal.

Cube has invited the vendors to review their proposal and resubmit it, but said the proposal was effectively at an end.

The former furniture manufacturer-turned-tech investment company had planned to focus solely on the IT industry if the acquisition went ahead.

Cube said it would now investigate alternative businesses to buy or merge with it.

Other than cash and receivables, Cube's only other asset is an investment in a financial services company based in Sydney.

Cube said it was continuing to review its options for this business, which it planned to list on the Australian Stock Exchange.