Commander attempts to get back on track with Nexon sale

Stan Beer
Monday, 31 March 2008 17:29

IT Industry - Strategy

Troubled junior telco Commander Communications (ASX:CDR) is to sell call centre solutions provider Nexon Asia Pacific back to its founders for what amounts to $2.6 million less than what it paid for it 12 months ago. The sale is being touted as a non- core asset divestment in line with the company's turnaround plan.

Commander originally acquired Nexon from Charles Assaf and Barry Assaf on 1 March 2007 for $9.1 million. conisting 3.8 million convertible notes with a face value of $2 each and which were due for redemption on 30 April. There was also an additional deferred payment of $1.5 million due on the same date.

Commander will sell Nexon back to Messrs Assaf who are still employed as managers at Nexon for effectively what they sold it to Commander for. However, as part of the deal, Commander will forgive a $1.9 million debt owed to it by Nexon and will also pay Nexon's $0.7 million tax bill.

Nexon is the third non-core asset sale by Commander, which almost went btroke last year after posting a $245 million loss for the half year ending 31 December 2007. Commander is attempting to stage a turnaround by divesting itself of what it considers non-core assets, which aside from Nexon, includes the sale of Unitel Australia and Commander’s Enterprise ICT business assets in Western Australia in February.

Amanda Lacaze, Managing Director and CEO of Commander Communications said: “We are delighted to announce the sale of Nexon to the original founders of Nexon, Charles and Barry Assaf. They have nurtured the business, its customers and staff and I believe Nexon will prosper under their guidance.

"This sale marks another milestone in the implementation of Commander’s Turnaround Plan and will enable us to continue increasing our focus on our core business areas.”

Charles Assaf of Nexon, said: “We are very pleased to have reached this agreement with Commander. Barry and I are excited to be able to continue to service our customers and care for Nexon’s people.  We have worked hard to grow the business since its inception and remain committed to the success of Nexon going forward.”