Zintel shares soar 36% on sale of Australian unit

Zintel Group shares soared 36 percent after the business telecommunications company announced the sale of its Australian unit for $15.3 million, most of which it plans to return to shareholders.

The stock rose 8 cents to 30 cents, a level it last reached in September 2010. About 93,000 shares changed hands.

Zintel said it hadn’t planned to sell the Australian business but was approached by j2 Global with a cash offer.

“The approach from j2 was considered attractive relative to the total market capitalisation of the group,” said chairman Nick Gordon.

“With existing cash reserves, the group has no need for additional funds and therefore intends to distribute a considerable portion of the sale proceeds to shareholders,” he said. Details have yet to be finalised.

The share surge will be welcome news to the company, which noted at the release of its first-half report that its market value was less than the realisable value of its businesses and net cash on hand.

(BusinessDesk)

BusinessDesk.co.nz

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