By ADAM GIFFORD
Internet service provider Iprolink is to stay in the hands of New Zealand-listed Newcall Group after British telecommunications company PCL International failed to come up with the $1.5 million asking price.
Newcall managing director Jim Bracknell said the offer to sell to PCL had been formally withdrawn.
"PCL ran
into financing problems, which were exacerbated by September 11," Mr Bracknell said.
"We are keen to hang on to Iprolink now. Its manager, Paul Speary, has done some interesting things in adding new products and services and building up market share, so the company won't be a drain on Newcall group.
"As we look at how we want to position Newcall in the New Zealand market, Iprolink is a valuable component."
Sharebroker Grant Samuels is being brought in this week to advise on a new valuation for Iprolink and for Newcall's other New Zealand business, electricity retailer Energy Online, which has about 20,000 customers.
"We will restructure Newcall Group now we have wrapped up the communications business, so we need to have an idea of what those assets are worth," Mr Bracknell said.
The company will quit its lead tenancy of Newcall Tower in Khyber Pass, with naming rights considered an unnecessary indulgence for the trimmed down company.
Mr Speary said while Iprolink hoped for an injection of funds from the PCL deal to maintain its growth, "we have superseded that. We've boxed on through and we are boxing on ahead."
Market share has increased, web hosting has almost doubled and revenue is coming from new services which can be on-sold to other ISPs or their customers.
