29 April 2003
None of the nation's leading telecom companies have put up their hands as potential buyers of orphaned internet and broadband company Uecomm, meaning energy outfit AlintaGas is likely to be stuck with the junior telco for the long term.
Uecomm's weak results could be holding back the buyers. It recorded a net loss of $5.5 million for the 2002 year and drew down as much as $40 million in loans from former parent United Energy. Uecomm chief executive Peter McGrath declined to comment, saying it was too soon to forecast what AlintaGas might decide to do with its 66 per cent stake.
He said Uecomm had not yet retained the services of a corporate adviser to canvass the options open to directors.
AlintaGas became a reluctant owner of Uecomm last week, with majority ownership passing to it as part of the $4 billion carve-up of Victoria's energy sector. United Energy spun out Uecomm during the 2000 dotcom boom, floating it on the Australian Stock Exchange, but Uecomm has since rung up a string of losses and needed an $80 million loan facility from its parent.
Mooted buyers of Uecomm, which has a market capitalisation of $85 million, include Primus, Telstra, Telecom Corporation of New Zealand and Optus, but yesterday they were all keeping their cards close to their chest.
Telstra could easily swallow Uecomm, but it is an unlikely bidder given its recent strategy of selling off equity holdings in other tech plays such as Keycorp.
Primus Telecom managing director Greg Wilson said he was not interested in picking up the asset.
A spokeswoman for SingTel-owned Optus said the company would not comment on speculation or rumour.
Uecomm's share price fell 6 per cent yesterday to 17 .
Get up to $600 in 1 hour with a Payday Loan!
To be eligible, you need to be employed for at least 3 months and earn at least $400 a week. If you think you qualify, then apply now or find out more.
* Please note, CashDoctors are currently unable to service Queensland residents.
