McLean-based Primus Telecommunications Group, Incorporated (PTGi) (NYSE: PTGI) has entered an agreement to sell off its Australian subsidiary for approximately $200 million.
Selling off the Melborne-based subsidiary does not require stock holders approval and has been received consent from PTGi Board of Directors and as well as a previously established special committee of the Board of Directors
The Australian operations will become part of M2 Telecommunications Group Ltd if the agreement fulfilled. PTGi has been exploring ways raise cash, the sale of its business unit it says, will raise stock holder value.
"The successful sale of Primus Australia to M2, a local operator in a consolidating market, is a transforming transaction for both companies. The net proceeds from the sale of Primus Australia represent a significant outcome of our strategic review process. We will assist M2 during the upcoming transition period, and ensure that our customers and employees have a smooth handoff to an experienced M2 leadership team." stated Peter D. Aquino, Chairman, President and CEO, stated