iiNet Announces ihug Sale

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iiNet (IIN) has today announced plans to sell its New Zealand-based ihug ISP business after the company received "a large number of unsolicited approaches," iiNet executive chairman Peter Harley said.

By Terry Hughes

While the company had not been seeking buyers for its kiwi business, Harley said the company has decided to "take advantage of the opportunity to realise an enhanced value for the business," particularly due to the business’ improved performance and recent positive regulatory decisions.

iiNet has taken the decision that ihug is outside its "key focus of activity," and that following a strategic review it would sell New Zealand’s third largest ISP, behind Telecom New Zealand’s (TEL) xtra and Telstra Clear.

iiNet is trading a little more than 2% higher today at 71.5c.

According to the FN Arena database, iiNet is rated negatively by all five brokers and equity advisers covering it and the average target on the stock is 75c.

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