Newcall Heads Of Agreement With Ucc And C²
Newcall Announces Heads Of Agreement With Ucc And C²
Newcall Group Limited (NEWCALL) is pleased to announce that it has entered into heads of agreement to acquire all of the shares in UCC (2001) Limited (UCC) and C Squared Technology Group Ltd (C2). The consideration for the purchase will be the issue of shares of 90,000,000 shares in NEWCALL at 4 cents per share. This transaction is subject to approval of Newcall shareholders.
This follows the profitable sale of Energy Online, NEWCALL’s online retail energy supply company, to Genesis Power Ltd, which was reported earlier in the month.
UCC is a profitable company, which supplies and manages specialist computer hardware and software requirements and supplies support services to New Zealand tertiary institutions and large organizations. It commenced business in 1997 as University Consortium Computers Limited and was sold to existing shareholders in 2001. UCC has consistently achieved sales of $14m p/a and expects a 13% annual increase in those sales in the current financial year.
UCC is currently expanding its business by growing its customer base into other educational institutions and widening its range of products and services to existing customers. Directors of UCC are: Alistair Austin, an experienced investor with extensive investments in the health sector, Leicester Chatfield, an executive with a corporate and business background having run a number of his own successful businesses who has more recently been involved with telecommunications and e-commerce projects, and Peter Uffindell, with more than 20 years of computer industry experience in senior executive roles.
C2 is a wholly owned subsidiary of UCC. C2 has developed wireless technology for the deployment of high-speed data transmission and telephony. The company has been discussing the provisioning of this technology with a number of interested parties both in New Zealand and offshore and is very close to finalizing certain projects. Rural communities see the provisioning of broadband as a stimulant to economic development of their community. C2 will add value to Iprolink, NEWCALL’s wholly owned Internet Service Provider that will, in addition to its current range of services, offer wireless broadband access to its existing customers thereby creating an important point of difference for Iprolink.
Once the transaction is affected NEWCALL will have positive equity and no debt. It expects solid profit growth from its existing and newly acquired operations.