Teliti International Ltd is selling its datacentres business to Noah Ventures for RM15m.
The company’s datacentre has still not been completed. Teliti has spent RM113m on phase 1 but a further RM41m needed to be spent. Teliti has not been able to raise the cash it requires. Phase 1 covers the first three rooms and phase 2 would add a further 13 rooms.
The datacentres business has debt of RM111.5m. Noah, which is related the main contractor on the development, will take on the debt.
Teliti shareholders and the Affin Bank have to agree to the sale. The first RM6m will be paid within 60 days of Affin Bank providing a bank guarantee to Noah with the second payment of RM4.5m within six months of the first payment. The final payment will be six months later.
Teliti will retain its IT services businesses which are profitable. In the six months to March 2013, the revenues from these operations fell from RM37.9m to RM33.6m, while operating profit before central costs rose from RM2.52m to RM3.13m. The remaining business does not warrant an Aim quotation so it will have to grow to justify being on the market.
At the June suspension price of 39.5p a share, Teliti is valued at £9.2m.
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