By NZPA
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Thursday 11th July 2002 |
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IT Capital chief executive David McKee Wright said the company wanted to sell Terabyte because although it was not losing money, the company was no longer a strategic asset.
IT Capital announced today it has begun preliminary discussions with an unnamed prospective purchaser of Terabyte.
"The sale price is under negotiation, however IT Capital expects to realise an accounting loss."
More than one party was interested in the company, Mr McKee Wright said.
The sale would leave IT Capital with its 42 percent stake in 3-D display company Deep Video Imaging, and 40 percent of software company Golden Orb. In February, announcing the company was writing down the value of its three investments by $9.7 million, Mr McKee Wright quipped that Terabyte was "dangerously close to making positive cashflow".
DVI, a 3D screen developer, has won a contract in the US but is not expected to be profitable for several years.
IT Capital recently reported a full-year loss of $21.4 million, compared with a $4.9 million loss the previous year.
IT Capital shareholders will be asked at their annual meeting on July 23 to approve the plan to bring three new ventures into the IT Capital fold.
Under the plan, Mr McKee Wright and fellow executive Maurice Bryham, would receive around 41 percent stakeholding in the technology company, in return for selling their interests in the three ventures -- companies developing mobile phone applications, an electric motor and a boat with wheels.
Shareholders will also vote on employing the duo under a three year contract through their management company, Platinum Management.
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