NEWCALL Buys Energy Reseller
FOR IMMEDIATE RELEASE
NEWCALL buys energy reseller
AUCKLAND, January 27, 2000- NEWCALL Group Ltd today announced it had bought a 75% share of Auckland-based energy reseller Energy Options Limited (EOL) for $600,000.
Consideration for the acquisition was completed by the issue of NEWCALL shares. There is an agreement limiting to some extent the sale of the shares for a period of time.
NEWCALL managing director Norman Nicholls said the attraction of EOL lay in its customer base and the ability of the two companies to sell complementary services to the same target market.
“EOL has customers in the small and medium size business market, and that’s exactly where NEWCALL is focused. We can offer additional telephony services to EOL customers and our customers have the benefit of reduced electricity prices.
“In fact we were so impressed with EOL that we changed to buying our electricity from them early in our discussions, resulting in significant savings in our energy bill,” Nicholls said.
NEWCALL has already developed an efficient infrastructure and integrating EOL into its existing systems allowed for considerable savings.
Nicholls said, “At one level we are able to share call centres and billing systems while at another we have the exciting prospect through our recently acquired subsidiary, Iprolink, to provide Internet billing and other e-commerce marketing to a broader client base.”
At a strategic level the move exploits the international trend towards utility convergence, Nicholls said. The purchase mean we have an opportunity to explore the provision of utility services at a very low cost.”
NEWCALL believes the ability to combine the provision of telephony and power provides a considerable opportunity.
NEWCALL Chief Financial Officer Guy Pierce said the purchase did not amount to a significant transaction in terms of the NEWCALL balance sheet.
”The vendors and management have retained 25% of the company so they are motivated to drive the company. The complementary nature of the two businesses made the acquisition compelling and will offer considerable benefits to our existing customers.”
NEWCALL Group Ltd is the newly listed parent company of NEWCALL Communications Ltd. Other companies in the group include NEWCALL Communications U.S.A., Inc., NEWCALL Communications Pty Ltd (Australia), and NEWCALL Communications International Ltd, which is based in Singapore.
A New Zealand registered Alternate Service Provider, NEWCALL Communications Ltd is one of the country’s fastest growing ‘new generation’ telecommunications companies. Officially launched in June 1998, NEWCALL carries both national and international telecommunications traffic.
Focusing primarily on small to medium-sized organisations, the company specialises in providing high quality cost-effective telecommunications services, including national and international tolls and faxes, land to mobile services and Internet access. State-of-the-art billing and management applications allow NEWCALL to simplify telecommunications for the end-user, while maintaining an innovative, price competitive service.
NEWCALL Communications Ltd is currently installing strategically placed switching nodes throughout New Zealand to facilitate leading edge telecommunications solutions. Delivered through a combination of networks which include Telecom New Zealand and other network providers, NEWCALL’s services are supported by a non-coded access agreement offering transparent access to the user. International services are facilitated through wholesale relationships with a range of international carriers.
NEWCALL’s senior management team is led by Managing Director Norman Nicholls, one of the most experienced senior executives in the telecommunications industry today. The company’s principal shareholder is CTW Beta Co Ltd, a subsidiary of Asia Pacific Wire and Cable Corporation, a US company which is traded on the NASDAQ Exchange.