LONDON (Thomson Financial) - Pipex Communications PLC said it has received
offers for its hosting and network services divisions and that the sale process
is now at an advanced stage with a single potential buyer.
The provider of telecommunications and Internet services said it is not in
discussions with any party about an offer for the group and it is no longer
considering a potential sale of the group as a whole.
Pipex Communications said if the sale of its hosting and networks services
divisions are completed, its remaining operations would consist solely of the
wireless joint venture, which it believes continues to represent a long-term
growth opportunity, although it is still at an early stage in its development.
At the same time the company announced a share reduction, which requires
court approval, and would effectively free up the proceeds made on Pipex's sale
of its broadband and voice operations last year to Tiscali SpA, for return to
shareholders.
Pipex said: "The capital reduction itself will not involve any distribution
or repayment of capital or share premium by the company and will not reduce the
underlying net assets of the company."
It said it intends to change its name to Freedom4 Communications PLC prior
to the expiry of the licence for using the name Pipex, on March 13 2008 and
implement the capital reduction.
Both these moves require shareholders approval at the general meeting which
will be held on March 3.
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