Zintel sells service company Cogent to private investors for $1 mln

Thursday 21st June 2012

Zintel Group, the NZAX-listed telecommunications company, has announced the sale of its subsidiary company, Zintel Cogent, for $1 million effective July 2.

The telecommunications service company was acquired by Zintel in October 2008. It was sold to private investors who will continue to operate and grow the business under the Cogent brand.

"Under our guidance we have been unable to achieve consistent profitability of the PBX business and think it will be better managed with a brighter future under new ownership," Nick Gordon, chairman of Zintel said in a statement. "This sees Zintel Group return to its core profitable business of telecommunications service provider through Zintel Communications, and cabling and infrastructure wiring through Commit Services.”

Cogent shares were sold for their net tangible asset value of about $1 million.

The Auckland-based company's shares have soared over 200 percent this year after it was offered more for its Australian unit than the company’s entire market value. Zintel shares last traded at 35 cents.

BusinessDesk.co.nz

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