Woosh parent may be delisted
The Canadian parent of New Zealand broadband provider Woosh faces being forcibly delisted from the Toronto Stock Exchange because of its flagging share price.
Craig Wireless bought a controlling stake in Woosh for US$5.5 million ($6.5 million) in 2011 and has since increased its stake to 75 per cent of the company.
Craig Wireless was put on notice that the Toronto exchange was reviewing its eligibility to remain quoted on the exchange after the market value of its publicly held shares fell below C$2m for 30 consecutive trading days, breaching one of the exchange's listing requirements.
Craig's shares closed last night at 9.5 Canadian cents, valuing the entire business at C$4.5m.
Woosh provides a broadband and phone service to more than 20,000 New Zealand customers through its own network of 135 cell sites in Auckland, Wellington, Christchurch and Southland and by reselling fixed-line broadband.
After sinking more than $179m into its attempt to become a major player in the telecommunications market, Woosh has established a niche as a "value" broadband provider.
It nevertheless came out on top for customer service in a survey of internet providers conducted by pollster Canstar in 2011.