Melbourne IT enters trading halt

Melbourne IT enters trading halt

Summary: The hosting company is expected to reveal the outcome of a strategic review of operations.

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TOPICS: Australia
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Updated 12 March, 5.13 a.m. AEST:Melbourne IT has announced it has sold its Digital Brand Services (DBS) business unit to US-based Corporate Service Company for AU$152.5 million.

Hosting and online services company Melbourne IT (ASX: MLB) has initiated a trading halt prior to an announcement of the outcome of a strategic review of its operations.

The review began in November 2012. At the time, Melbourne IT was contemplating selling some of its business units off-shore after experiencing a downturn partially attributed to setbacks of several projects for clients.

Government spending cuts also affected the company's bottom-line.

The Melbourne IT board said at the time that it was keen to "hold further discussions with a number of parties, primarily large offshore organisations [that] have previously indicated interest in potentially acquiring one or more divisions of the company".

The trading halt is scheduled to conclude on March 14, or until Melbourne IT makes its announcement.

More to follow.

Topic: Australia

Spandas Lui

About Spandas Lui

Spandas forayed into tech journalism in 2009 as a fresh university graduate spurring her passion for all things tech. Based in Australia, Spandas covers enterprise and business IT.

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