Cabletalk has confirmed that Downer EDI Engineering is to buy the business assets of Astute, the Cabletalk subsidiary that performs telecommunications field services, for $5 million.
Following the loss of Astute’s contract with TelstraClear in the South Island earlier this year, Cabletalk explored various options before deciding on a sale of Astute’s business assets.
In a statement to the NZX today, Cabletalk says: “TCL’s decision affected the employment of 50 staff and rendered Astutue’s significant investment in equipment, vans, tools and plant as surplus to requirements.
“In turn, TCL’s decision made the balance of Astute’s business in the North Island unsustainable.”
A decision was made to sell, and negotiations were made with an interested party, who was today named as Downer.
Cabletalk’s statement says: “Under the agreement, Downer will offer employment to most of the staff of Astute, which will provide continuity of service for Astutue’s customers. Downer will also take over various property, vehicle and equipment leases.”
The agreement is conditional and settlement is scheduled for May 26.