Hanover confirm plans for Onesource sale

Hanover Group has ended speculation by confirming it will sell office technology company Onesource.

But the company, a business vehicle for millionaire Eric Watson, has not said how Onesource would be sold, the DominionPost reported today.

Options included a share float, a management buyout, and sale to another trader.

Onesource chief executive Evan Johnson said management was interested in buying the company but it was still early days.

He said Hanover had expressed no preference for the mode of sale.

"It's clear that the shareholders are happy to sell at a price that leaves value on the table," Mr Johnson said.

A broker was expected to be appointed within a few days to manage the sale, and a valuation of Onesource completed within a month.

For the meantime, Mr Johnson would not speculate on what the company might fetch.

Brokers he had spoken to indicated a public float would be well received by the market.

"There's some good substance behind it," he said.

"It's a business that's been around a while and generated good cashflows and returns."

There was no deadline on the sale process, but Mr Johnson said Hanover wanted the deal finished by year's end.

Hanover decided to sell the company to stick to the financial services market, he said.

The company was "fighting fit" with strong profitability.

It would turn over $140 million in revenue this year, and has 600 staff at 15 locations.

Mr Johnson expected profits for the June year to be up 50 per cent.

Onesource has operated two business brands, Cogent Communications for telecommunications equipment and U-Bix for copiers and printers.

U-Bix recently merged with the New Zealand operation of Japanese firm Konica Minolta.

Mr Johnson said the full benefits of this merger would not be felt until the next financial year.

Mr Watson also took another step back from the IT services market last year, when his Cullen Investments sold Gen-i to Telecom for $62.5 million.

It has been rumoured for some time that Mr Watson is keen to quit New Zealand and focus on his British business interests.

- NZPA