UXC yet to find a buyer, demerger plan

UXC (ASX:UXC) has reported that it has yet to find a buyer or start a demerger after announcing a strategic review in February

IT services and consulting outfit, UXC (ASX:UXC), has reported that it is yet to find a willing buyer for the company, ten months on from announcing that it was considering selling off the company in an effort to unlock greater shareholder value.

In July, the company said it was then in current negotiations under due diligence, with an undisclosed party. The negotiations expired in July without result.

At the time it also noted it had entered into a number of talks with “significant parties” around a potential full bid for the company.

The potential sell off of the company was announced in February when UXC commenced a strategic review to examine ways to unlock greater shareholder value for the company, including turning to private equity and a possible demerger.

According to UXC executive chairman Geoff Lord, the company had pursued the strategic review with “great energy and dedication” and despite problems with its discontinued operations, believed the underlying business to be sound.

“If this value can be recognised without a transaction, that remains an option for us,” Lord said in an ASX report.

“The approach we have taken to the strategic review has not lent itself to quick result, but we are determined to provide the best result for our shareholders.

“Discussions continue with three parties, and shareholders will be advised of further progress as and when the board considers potential transactions to be in the best interest of shareholders and stakeholders [and] such potential transaction progress to binding offers.”

The comments follow the reporting of the company’s year to 30 June 2010 results, which include UXC’s business services and professional services groups earnings of $43 million, up from $33 million for the year to 30 June 2009.

Revenues for the 2010 year were $473 million, up from $456 million the previous year.

Earnings for UXC’s field solutions group were $7.6 million, down from $8.4 million in the 2009 year. Revenues were $212 million, up from $179 million during the 2009 year.

The group’s revenues were hit by the collapse of the market price for Renewable Energy Certificates, the cancellation and/or abrupt revision of several government programs in the environmental sector, contractual disputes, and stock write-downs.

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