Sale of Iprolink leaves Newcall a listed shell

By ADAM GIFFORD

Sharemarket minnow Newcall is to sell the assets of internet service company Iprolink to Compass Communications.

The price has not been revealed, but Newcall chief executive Jim Bracknell said the deal would leave the company debt-free, with positive shareholder equity and cash in the bank.

As well as having a cashed-up shell of a publicly listed company for sale, Newcall shareholders also own Vistron, a new call centre operation starting this month.

Bracknell said Vistron was a joint venture with Arizona company Selway, and would target Asian language customers.

"The first set of customers will be a Japanese company doing a survey, then we have Chinese, Korean and Vietnamese customers," he said.

The centre would be at Newcall Tower in Khyber Pass Rd and would probably hire Asian students, who are allowed to work for 15 hours a week under their student visas.

It has been a long march backwards for Newcall, which was started as an attempt to capitalise on a deregulated telecommunications environment which turned out to be more hype than substance.

As its major shareholder, Bangkok-listed Charoong Thai Wireless, tried to limit its losses, Newcall sold assets including its telephone calling card business, its toll customers and its energy retailer, Energy Online.

The Iprolink sale process pitted Compass against Orcon Internet, and Bracknell said the result came down to timing.

"We were just able to get a deal quicker because we were selling the assets rather than the shares," he said.

Compass chief executive Karim Hussona said it was his company's sixth acquisition since its formation in 1995, so "we are getting pretty efficient at it".

"We have always purchased business by buying assets. When you buy shares you also buy any liabilities, so you have to do more due diligence and get extra warranties signed. For an asset this size, it is not worth it."