UXC rejects takeover bids

IT services group UXC Limited has rejected a number of buyout offers from private equity firms and trade buyers to “maximise value to shareholders”, the company said in an ASX announcement today. 

UXC said the unnamed parties had looked to buy the company or its individual business units. UXC informed shareholders in July that it was engaged in due diligence for a potential sale of the company to an unnamed suitor.

The company said today that it had an offer for the whole of UXC from two private equity firms, as well as an offer from three trade buyers for the IT Group, which had an enterprise value in excess of $300 million and included UXC's business solutions and professional solutions groups.

One trade buyer was interested in the business solutions group and parties were interested in buying the field solutions group which was valued at about. $70 million.

“To this point, UXC has continued discussions with two interested parties, however, the board has now taken the view that the divestment at this stage may not fully realise the underlying value and potential that exists within the UXC for the shareholders.

“As a result the board has decided to continue in the interim to trade as a standalone entity to rebuild shareholder value.

“The board believes that this will maximise value to shareholders over the long term and will not preclude any other alternative,” it said. 

UXC would continue to investigate the “value creation prospects of separating the IT group from the field solutions group through a demerger process”.

Meanwhile, UXC has promoted business solutions group managing director Cris Nicolli as managing director of the whole company. 

Nicolli presided over the growth in that group from $89 million in 2003 to $442 million.

Further appointments are being pursued in both the Business Solutions Group and Field Solutions Group.