LONDON (Thomson Financial) - Oakley Capital, the private equity group, is
the mystery suitor in advanced takeover talks to buy Pipex's web-hosting and
network services businesses, an industry source said.
Last week, Pipex said it had received offers for its hosting and network
services divisions, and that it was in advanced discussions with an unnamed
single potential buyer.
Goldman Sachs has valued the two divisions at 105 mln stg. The main
attraction of Pipex's web hosting business is its high proportion of
subscriptions which provide a strong cashflow, according to industry observers.
Pipex declined to comment. AIM-listed Oakley, run by Peter Dubens, who is
also chairman of Pipex, was not immediately available for comment.
Pipex began a strategic review of its business last March.
It has already sold its broadband business to internet service provider
Tiscali for 210 mln stg last September. Pipex used around 90 mln stg of the cash
to cut its debt.
If the sale of the hosting and networking business goes through, Pipex plans
to add a "substantial portion" of the proceeds to the remains of those from the
broadband sale, and return the capital to shareholders, after clearing possible
further debts.
That will leave the company with its wireless technology business, which has
a joint venture with Intel to exploit licensed spectrum operating the WiMAX
standard.
nick.huber@thomson.com
nh/rw
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