ASG Group plans data centre sale

Funds will be used to reduce existing debt

IT services company ASG Group (ASX: ASZ) has announced that it plans to sell its Perth data centre in order to reduce debt.

In an ASX announcement, the company said the facility would be sold as part of a capital management program.

“Whilst the data centre is a non-core asset to the company, it is an asset of significant value and we will only seek to divest this asset if its full value is realised through the sale process,” said ASG Group CEO Geoff Lewis in a statement.

He added that the company remains in discussion with “interested parties” and will provide more updates if the talks lead to a binding agreement.

In August, the company reported a small revenue rise of $152.5 million for the financial year ended 30 June, up from $150.3 million in 2012.

However, it also made a net loss of $29.9 million. In addition, earnings before interest, tax, depreciation and amortisation (EBITDA) fell to a loss of $19.9 million from $20.6 million the previous year.

The 550 square metre data centre was opened in September 2011. Western Australian electricity utility, Western Power, was announced as a foundation customer under a five-year $35 million deal.

ASG Group has been contacted for more information by Computerworld Australia.

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Tags data centre consolidationASG GroupASX: ASZ

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