Orcon, the internet service provider owned by state-owned Kordia, has attracted “intensified” buyer interest in recent months and an announcement is expected to be made in “coming weeks”.
Kordia, which rolled Orcon into its network business last year, has been in talks with several parties for a potential sale of the ISP, it said in an emailed statement. The merged unit was dubbed Kordia New Zealand, headed up by Orcon boss Scott Bartlett, and accounted for 40 percent of the group’s revenue. The ISP continued to trade under its own banner.
“Interest in the business intensified following the announcement of the integration with Kordia in November last year,” the company said. “Discussions are continuing, and Kordia expects to be able to make a formal announcement in the coming weeks.”
Kordia has focussed on new revenue streams after the government decided to free up radio spectrum for newer mobile technology by axing analogue TV in favour of a digital signal. That was initially scheduled for 2015, but was brought forward to kick off last year.
Last month, the state-owned enterprise reported an 11 percent increase in first-half sales to $207.1 million, beating its Statement of Corporate Intent target. Profit shrank 69 percent to $2.2 million in the six months ended Dec. 31, and was flat from a year earlier after stripping out a one-time gain in the 2012 financial year.