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Cabletalk Ltd has sold its Astute business to Australian company Downer EDI for $5 million, and is looking to sell another subsidiary.
The listed telecommunications company hit problems after its main customer TelstraClear awarded a South Island field services contract to another company, affecting 50 staff and making the rest of Astute's business unsustainable.
Under the conditional agreement, which settles on May 26, Downer will buy Astute's assets and offer employment to most of the staff.
Cabletalk directors were in negotiations with an interested party to sell its surveillance and security business Fortlock.
The board was unable to advise about the impact for shareholders and the business.
Earlier this year, the company warned that a sharp decline in revenue and a rise in debtors since December would push it into an operational loss, and downgraded its forecasts.
Shares in Cabletalk halved to 2c, having plunged from 52c a year ago.
- NZPA
