Sydney - Thursday - January 24: (RWE Australian Business News) -...

Sydney - Thursday - January 24: (RWE Australian Business News) -
Tele-IP Ltd (ASX:TEE) has entered a conditional contract for the sale of
its Network Services Division to Brennan Telephony Pty Ltd.
"During the past 12 months the directors, senior executives and
consultants have undertaken a detailed review of the company's
activities and operations in response to the losses that have been
incurred," chairman Mr Anthony Bigum said.
"These losses are attributable to the company's Network Services
Division and notwithstanding the implementation of a number of changes
in the past 18 months losses are still being incurred.
"The directors consider that whilst profitability could be
achieved with substantial investment and further restructure of this
division, it would be in the shareholders' interest to focus the
company's resources on the further development of the profitable
Satellite Communications Division and to sell the Network Services
Division," he said.
The contract provides for Tele-IP to receive a payment for
goodwill of $1.01m plus the accounting value of inventory and fixed
assets required by the purchaser.
Tele-IP will be sending out a notice of meeting to shareholders
to be held in late February or early March to approve the sale and to
change the name of the company.
It anticipates the sale of the business will be completed by
early March.