- Telecommunications player Spirit Technology (ST1) has flagged intentions to divest from its consumer infrastructure assets
- Spirit’s consumer division provides internet service to residential customers predominantly in apartment buildings in Australia’s eastern states
- The company is instead electing to focus on its business-to-business assets, which it maintains accounts for greater revenue than its consumer faction
- In terms of a timeframe, the divestment process is expected to run through the third and fourth quarters of FY21
- Proceeds from the divestment will help the company continue to acquire high-growth assets across cyber security, cloud and IT services
- Spirit Technology shares closed the day down 5.26 per cent at 36 cents
Telecommunications player Spirit Technology (ST1) has flagged intentions to divest from its consumer infrastructure assets.
The decision comes as the company looks to shift its focus from consumer to business markets, affirming its consumer assets account for a small amount of its revenue compared to its business-t0-business assets.
Spirit’s consumer division provides internet services to thousands of residential customers, primarily in large apartment buildings across Melbourne, Brisbane and the Gold Coast.
The consumer network and infrastructure assets are in 97 buildings, with access to over roughly 18,300 possible connections.
“As Spirit has evolved to a large integrated IT and telecommunications provider, it is in line with our strategy to divest the consumer assets, which are no longer core to our strategy,” said Spirit Managing Director Sol Lukatsky.
“Proceeds from the divestment will be used to continue to acquire high growth assets across cyber security, cloud and IT services, which are in high demand within our B2B customer base,” he commented.
In terms of a timeframe, the divestment process is expected to run through the third and fourth quarters of FY21
Spirit affirmed the divestment will have no impact on existing customers.
Spirit Technology shares closed the day down 5.26 per cent at 36 cents.