west australian article

Swiftel to buy People Telecom

By Fran Spencer



LISTED network service provider Swiftel is expected to unveil today plans to acquire Sydney-based sales partner People Telecom in a deal estimated to be worth about $30 million.

The WA company and People Tel have formed a close working relationship since announcing a cross-sales alliance last July, when high-profile People Tel directors Ryan O'Hare and Colin Marland took stakes in Swiftel.

According to Swiftel's 2003 annual report, Mr O'Hare's company, Nashar Pty Ltd, holds a 1.9 per cent stake in the WA company while E-Cash Australia, a company owned by Mr O'Hare and Mr Marland, has a 1.2 per cent stake.

Swiftel chief executive Chris Gale yesterday refused to comment on a potential People Tel deal, saying an announcement would be made by the end of the week.

However, industry sources have suggested the listed company plans to shell out scrip worth between $30 million and $40 million for the unlisted People Tel - which is owned by its four directors and film production company Village Roadshow, which holds 526,000 of its 12.3 million shares.

People Tel was founded in 2000 and opened its first Perth office last May.

The company focuses exclusively on the business sector, particularly targeting companies with monthly phone bills of $3000 or more.

The sales alliance struck between People Tel and Swiftel last year allowed the WA company to diversify into voice products, and has seen the partners bundle each other's products for sale on one bill under their own brands.

Swiftel shares last traded at 12¢.






















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