ASG Group in talks for possible data centre sale

CEO Geoff Lewis says a sale will happen if it receives a “fair return”

Perth-based IT services company ASG Group (ASX: ASZ) has confirmed that several parties have expressed interest in buying its data centre.

CEO Geoff Lewis announced plans to sell the Perth facility as part of a capital management program in an ASX announcement during October 2013.

The 550 square metre facility was opened in September 2011. Western Australian electricity utility company Western Power was announced as a foundation customer under a five-year $35 million contract.

At a media briefing in Sydney, Lewis said that while a “number of people” were interested in the data centre it would only be sold if the company received what he considered a “fair return”.

“We don’t see it as a strategic asset. However, it is producing good profits and has long term [customer] contracts," he said.

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, ASG Group also announced a net loss of $29.9 million while earnings before interest, tax, depreciation and amortisation (EBITDA) fell to a loss of $19.9 million from $20.6 million the previous year.

Follow Hamish Barwick on Twitter: @HamishBarwick

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Tags ASG GroupacquisitionGeoff LewisData Centre

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