Zintel sells service company Cogent for $1m
BUSINESSDESK: NZAX-listed telecommunications company Zintel Group has sold subsidiary Zintel Cogent for $1 million, effective July 2.
The telecommunications service company was acquired by Zintel in October 2008. It was sold to private investors, who will continue to operate and grow the business under the Cogent brand.
"Under our guidance we have been unable to achieve consistent profitability of the PBX business and think it will be better managed with a brighter future under new ownership," Zintel chairman Nick Gordon said.
"This sees Zintel Group return to its core profitable business of telecommunications service provider through Zintel Communications, and cabling and infrastructure wiring through Commit Services,” he said.
Cogent shares were sold for their net tangible asset value of about $1 million.
The Auckland-based company's shares have soared over 200% this year after it was offered more for its Australian unit than the company’s entire market value.
Zintel shares last traded at 35 cents.