UK B2B telco Daisy Group has sold its WiMAX spectrum licences and Freedom4 WiFi Limited.
The first was sold to to PCCW-owned UK Broadband Limited for a cash consideration of £12.5m.
The sale will eliminate an annual cash outflow of £0.8m, while closing…
UK B2B telco Daisy Group has sold its WiMAX spectrum licences and Freedom4 WiFi Limited.
The first was sold to to PCCW-owned UK Broadband Limited for a cash consideration of £12.5m.
The sale will eliminate an annual cash outflow of £0.8m, while closing Freedom4 Limited will save an additional £1.0m per year, the company said when announcing the deal today.
As of September 2009, the licences, which had been held within Freedom4 Limited, had been valued at £4.2m. Since then, Freedom4 Limited results have been kept separate from the Daisy Group plc results.
The loss-making WiFi business has been sold to the existing management team for an undisclosed, nominal sum. That business made a loss of £0.3m in the 15-month period to 31 March 2010 and represented a cash drain of £0.2m per year.
Daisy CEO Matthew Riley stated: “Our core strategy is to become the leading provider of unified communications to the SME and mid-market business customers. The WiMAX and WiFi businesses were not core to the Daisy Group, and the disposals mean we can focus on our unified communications strategy, as well as improve cash flow.”
