Wilson Neill sells slice of Radionet

By SIMON HENDERY media writer

Hospitality-turned-technology company Wilson Neill has been saved from notching up a loss this year after securing a deal for a stake in its wireless internet subsidiary.

The company has sold 27 per cent of Radionet to a Costa Rica-based communications company, WeCU, for $17.5 million.

Wilson Neill bought Radionet last year for $3.75 million worth of its own shares.

WeCU is a communications and internet service provider company with fibre optic and satellite networks in the US, Central America and Asia.

Its Asia Pacific managing director, Russell Kerr, said last night that WeCU had been excited about the potential of Radionet's technology and had plans to expand into Australia, the Pacific and Asia.

Last month Wilson Neill reported a $762,000 loss for the six months to the end of September but yesterday the company said the deal with WeCU would result in a full-year surplus of $7 million.

WeCU has a 24-month option to purchase a further 23 per cent of Radionet for $20 million. In December Wilson Neill announced a $17 million deal to buy Auckland publisher and e-tailer IT Media.

The deal, to be ratified at a shareholders' meeting on March 6, will see IT Media founder Tim Connell installed as Wilson Neill managing director with a 30 per cent stake.

Other Wilson Neill investments include the Cobb & Co chain of restaurants and the Parnell restaurant Iguacu.