Hagemeyer, Tech Pacific’s parent company, has announced that the sale of its distribution arm has been cancelled.
The company made the announcement in Amsterdam during its half yearly report to its shareholders.
Hagemeyer says market conditions are not conducive to earning what it considers to be a suitable price.
"In December last year we announced a review of our options in relation to the Tech Pacific group of companies. The options, including divestment, were evaluated against the group’s financial criteria of maximising shareholder value. With the current uncertainty affecting the ICT industry worldwide it has become clear that extending the divestment process further would not maximise shareholder value," says the statement.
"Hence we will retain the business and will provide appropriate support to ensure the company is well positioned to benefit from economic recovery and an upturn in the ICT industry."
Graham Pickles, Hagemeyer Asia Pacific’s CEO, says that it has always been Hagemeyer’s intention when it embarked on its strategic review to hold on to Tech Pacific if it was not able to achieve sufficient value for its shareholders.
"Tech Pacific is a successful, profitable company and Hagemeyer will remain a supportive owner. It will be business as usual for our staff, vendors and customers."
Auckland-based boss of Tech Pacific New Zealand, Tony Butler, could not be reached for a comment, but the company confirms the deal is off. A month ago, Butler spoke to Reseller News and was confident of the proposed sale, although he did not disclose the name of the interested party.
However, Reseller News understood at the time, that an investment group, CVC Capital Partners, was keen on the sale. Sister publication Australian Reseller News (ARN) reported the Asia Pacific division of the equity investment fund CVC had opened an office in Sydney and was on the lookout for investment opportunities. CVC has more than $US30 billion worth of investments under its belt. It has set up a fund for the Asia Pacific region that includes $500 million from institutional investors and $250 million from financial services company Citigroup.