Wireless hotspots provider SkyNetGlobal's pattern of rapid buyups and rollouts has seemingly gone into reverse, with the ASX-listed vendor signing away three subsidiaries for $6.5 million to a Singapore investor.
Sydney-based SkyNetGlobal said this week that it had entered into a definite share purchase agreement to sell subsidiaries Malaysia-based W Home Communications, and Singapore-based SkyNetGlobal and Clear Data Voice. The buyer is Singapore-based private investment company Zelcrest Capital.
Jonathan Soon, CEO at SkyNetGlobal, said the company was realising a substantial cash profit from the sale but would retain licensing rights.
'Rather than a divestment, this deal can be viewed as a new growth model for the company offshore. We now have a local partner in the region committed to growing the business using the SkyNetGlobal brand and technology,' Soon said in a statement.
Zelcrest Capital and SkyNetGlobal had entered into a 20-year licensing agreement allowing the former to expand across south-east Asia, using SkyNetGlobal branding, business processes, and W Home's MDU Technology and IXM software. SkyNetGlobal would get five percent of the gross revenues generated thereby.
The Singapore-based SkyNetGlobal division represented one of its parent's most important wins last year - it is the owner and operator of SkyNetGlobal's 127 wireless hotspots at McDonalds in Singapore.
The Malaysian W Home 'smart home' products subsidiary was only acquired by the parent company in February. W Home in Australia is SkyNetGlobal's main tool for entering the digital home market.
Soon said SkyNetGlobal planned to replicate the deal in other countries.
However, SkyNetGlobal 'remains committed' to providing wireless internet services to Australian customers and roaming partners worldwide, the company said.
'This transaction will have no impact on our existing relationships and agreements with roaming partners and customers,' Soon said.
Further, the company said it had entered into a $2.4 million hotspot roaming deal with Zelcrest Capital that would allow SkyNetGlobal the exclusive right to market and sell services on the Singapore wireless network, on an unlimited usage arrangement for two years from 1 July.
Zelcrest Capital must pay SkyNetGlobal the full $6.5 million for its acquisitions by 30 September, the company said. Half the sale proceeds from the sale of the Singapore SkyNetGlobal division - some $2.5 million - would be paid to Walton Assets, a company with which SkyNetGlobal in Sydney entered into a rights agreement concerning that subsidiary in December.