Acquisition Resources

UK networking company Pipex Communications Plc has announced plans to look at demerging its WiMAX venture, Pipex Wireless, and sell its remaining web hosting and business services activities, after completing the sale of their Broadband and Voice division. 

In a statement detailing the company’s results for the six months ended June 2007, they said “The board believes that Pipex Wireless continues to represent an excellent long-term growth opportunity. However, following the sale of the Broadband and Voice division, Pipex Wireless no longer provides a compelling strategic fit with the remaining businesses. During the fourth quarter we therefore intend to initiate a process leading to a demerger of Pipex Wireless.”

“During the period, and subsequently, we have received a number of expressions of interest in the remaining parts of the Group, comprising the web hosting and business services divisions. As a result of these, and following a review of the remaining operations, we intend to initiate a sale process during the fourth quarter, for the web hosting and network services businesses, including the net proceeds from the sale of the Broadband and Voice Division.”

Pipex has named private equity firm Oakley Capital, who have a limited partner, Peter Rubens, sitting on the Pipex board, as an interested party. 

“The board believes that a sale of the group will maximise delivery of shareholder value and provide the most efficient method of returning cash to shareholders.”