Receivers find Comindico buyer

Newcastle-based service provider SP Telemedia Limited has snared the assets and business of failed wholesaler, Comindico.

In a brief statement issued to the Australia Stock Exchange SP Telemedia (SPT) said it had acquired Comindico's business - which consisted of a fully converged IP based network - from receivers McGrathNicol and Partners for a "fraction of its original construction cost".

The price and terms of sale remain confidential.

SPT was contacted for further comments but did not respond by press time

According to the SPT statement on the ASX, the acquisition will enable SPT to expand its regional IP broadband network and significantly increase its capital city presence.

"The acquisition will also enable SPT to add a number of new products to the current SPT product suite, mainly in the voice, dial-up Internet and broadband markets," the statement said.

More importantly, it said, this would be "owned" infrastructure.

SPT's network provides broadband and data networking products and services along the Eastern seaboard. Its mainstream telecommunications products to homes and businesses are operated by its subsidiary, Kooee Communications.

In light of its current strong standing, the directors of SPT have attempted to put existing Comindcio customers at ease. In the statement it assured these customers of the continued delivery of their existing Comindico products and services.

Comindico went into voluntary administration in late September after getting through $400 million of investment funds. This included $175 million of vendor financing from Cisco, the company's largest unsecured creditor.

McGrathNicol and Partners were appointed as receivers and managers by Cisco.

SP Telemedia has been traveling well. It reported after tax profits of $9.66 million for the year ending July 31, 2004.

In August, the company acquired Newcastle-based NBN Television from Washington H Soul Pattinson for $145 million.

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