26/03/2008 - 15:45

Wavenet sells technology business

26/03/2008 - 15:45

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Burswood-based Wavenet International Ltd has announced the sale of its modem technology business for at least $2.15 million, with the potential for further payments.

Wavenet sells technology business

Burswood-based Wavenet International Ltd has announced the sale of its modem technology business for at least $2.15 million, with the potential for further payments.

Wavenet Technoogy Pty Ltd has been sold to Mobitex Technology AB, an internatonal wireless technology company.

 

The Wavenet announcement is pasted below:

The Board of Wavenet International Ltd (ASX: WAL) is pleased to announce that it has entered into an agreement for the sale of its wholly owned subsidiary business Wavenet Technology Pty Ltd (Wavenet Technology) to Mobitex Technology AB (Mobitex), an international wireless technology company.
The sale proceeds comprise a total upfront cash payment (if settled today) of approximately A$1.4 million (representing net assets adjusted for intercompany loans and cash) and a further three annual payments of $250,000 commencing 30 June 2008. Subject to successful grant applications and achieving benchmark modem sales over the ensuing 3 to 4 years, Wavenet can earn a further total payment of $1,250,000.
Settlement of the transaction is subject to and conditional upon a number of conditions including shareholder approval.
Wavenet International Chairman Mick Stroud said the transaction was the next logical step for the expansion of Wavenet Technology to provide it with greater access to European, Northern American and the expanding Chinese markets.
"The Board is proud to have developed Wavenet Technology to a stage where it has been recognised for its value by Mobitex, which is one of the world's leading wireless technology companies, "Mr Stroud said.
"Given the increased access to international markets available through Mobitex, we believe the time is right for Wavenet to divest these assets and focus on pursuing new growth opportunities as opposed to Wavenet seeking to develop an international marketing and sales program out of Perth."
Mobitex Technology is a leading wireless technology company with offices in Sweden, UK, China and the US. The business develops, sells and supports wireless Mobitex systems worldwide and is committed to establishing a strong presence in China.
Completion of the transaction is expected by 30 April 2008, prior to which shareholders will be asked to vote on a resolution approving the sale at an Extraordinary General Meeting. Detailed materials for the EGM will be despatched to shareholders shortly.

 

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