UXC yet to find buyer

Oxygen owner still seeking to be acquired

IT services and consulting firm UXC has reported that it is yet to find a willing buyer, ten months on from announcing that it was seeking a buyer, in an effort to unlock greater shareholder value. UXC owns New Zealand SAP services specialist Oxygen. In July, UXC said it was in negotiations under due diligence, with an undisclosed party. The negotiations expired that month without result. At the time it also noted it had entered into a number of talks with “significant parties” around a potential full bid for the company. The potential sell off of the company was announced in February when UXC commenced a strategic review to examine ways to unlock greater shareholder value for the company, including turning to private equity and a possible demerger. According to UXC executive chairman Geoff Lord, the company had pursued the strategic review with “great energy and dedication” and despite problems with its discontinued operations, believed the underlying business to be sound. “If this value can be recognised without a transaction, that remains an option for us,” Lord said in an ASX report. “The approach we have taken to the strategic review has not lent itself to quick result, but we are determined to provide the best result for our shareholders. “Discussions continue with three parties, and shareholders will be advised of further progress as and when the board considers potential transactions to be in the best interest of shareholders and stakeholders [and] such potential transaction progress to binding offers.” The comments follow the reporting of the company’s year to 30 June 2010 results, which include UXC’s business services and professional services groups earnings of $A43 million, up from $33 million for the year to 30 June 2009. Revenues for the 2010 year were $473 million, up from $456 million the previous year.

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