By Phil Boeyen, ShareChat Business News Editor
|
Tuesday 26th March 2002 |
Text too small? |
The company says it is working with advisor Grant Samuel and Associates and several proposals are being considered.
"We want to explore every possibility for our shareholders in a transparent manner and feel the active participation of Grant Samuel and Associates, a recognized financial advisor, is essential to achieving this objective," says managing director Jim Bracknell.
Newcall currently runs three businesses in electricity retailing and information technology.
Energy Online is an electricity retailer, Newcall Technology sells software and Iprolink is an internet service provider. The group also has a minority shareholding in Singapore telco, Newcall Communications Singapore.
Mr Bracknell says the board continues to feel that the underlying value of the Newcall businesses is not reflected in its share price and that the best way to realise greater value is through a restructure.
"This will culminate in a series of recommendations that in due time the board will put to Newcall shareholders for ratification."
Newcall Group has been around since July 1999 as a listed company after the New Zealand Salmon Company purchased Newcall Communications for $9 million. In January 2000 it bought Iprolink for $3.6 million in cash and shares
The company was unable to make profitable headway as a full telecommunications business and sold its telco customer base to TelstraSaturn and Clear early last year.
In the year ended December 2001 the company lost $3.25 million on revenue of $18.28 million. The result included operating losses of $645,000 from Energy Online and a $321,000 deficit at Iprolink.
Newcall Group has a current market capitalisation of around $4.7 million with 134 million shares on issue.
No comments yet
