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Energis, which is one of Britain's biggest Internet data carriers, said on Thursday that it was taking the step after conducting a strategic review of its business. The company, which issued its third profit warning in six months in January, is struggling to meet commitments on loans of STG725 million.
"The review indicates that the company's continental European businesses as a whole have attractive prospects, but require significant further funding in the near future. Accordingly, the company believes it is appropriate to pursue the disposal of these business," said Energis in a statement.
Energis' statement was not well greeted by the market with its shares down over 70 percent. Slightly after 4pm in London, its stock had plunged to STG0.375, down STG0.950. At its peak the stock was worth STG6.2875.
Energis has spent close of STG1 billion in buying European businesses over the last number of years including German ISP BusinessOnline and Web hosting company Ision. However, while these businesses account for around a quarter of the group's sales, they still require massive amounts of investment before they can match Energis' British operations.
Energis also said that it will be laying-off 400 staff in the UK and implementing cost cutting measures aimed at saving it STG25 million per annum. Last year the company slashed 450 jobs.
Nevada Tele.com is a joint venture between Energis and Northern Ireland power company Viridian. Spokespeople for both Viridian and Nevada told ElectricNews.Net that Energis' proposed sales will not have any impact on Nevada.
A spokesperson for Energis was not available to comment at the time of going to press.
Nevada was launched in Belfast in 1999 and entered the Republic's telecoms market in July 2000 with the purchase of telecommunications company Stentor for STG36 million.
It offers a variety of voice, data, Internet, e-commerce, security and call centre solutions on both sides of the border and in June 2001 it opened a STG5 million data centre in Dublin. The company employs around 160 people in operations in Belfast, Dublin, Cork and Shannon.
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