Kordia denies sale rumour
Kordia is denying a report the company is for sale.
The Australian Financial Review said Kordia's managers had sent paperwork to investment banks, asking them to bid to run a sale process for the state-owned enterprise.
''We are not selling Kordia Group,'' Kordia spokeswoman Emma Morrison said.
''In Australia, there is nothing to announce. There is no board resolution to sell KSA [Kordia Solution Australia].
''Kordia has significant growth in Australia and it is expanding very fast. As always, we are looking at the opportunities for funding on a project by project basis to sustain this rate of growth.''
Computerworld reported earlier this month that Kordia's board had kicked off a ''strategic review'' of the business which directors expected to complete in September.
Kordia diversified aggressively into the telecommunications industry several years ago after it became clear its core television transmission business would be savaged by the closure of New Zealand's analogue television network and the switch to digital transmission. As part of the strategy, it bought internet provider Orcon for $24.3 million in 2007.
It also carries out engineering work in Australia and Asia and has had success recently winning contracts to build communications networks for Australian mining companies.
However, Kordia is believed not to have a sufficiently strong or consistent financial record to support a Might River Power-style sharemarket float.
There is speculation one outcome of the strategic review might be a breakup of the business. This year Kordia posted an interim net profit of $7.3 million.
- © Fairfax NZ News