Cash-strapped Internet Service Provider eisa is looking to jump into bed with another partner following the jilting of the OzEmail takeover deal by UUNet. eisa has also refuted speculation that it is responsible for the debts of the Edge group in Australia.
The much-talked-about purchase of fellow ISP OzEmail fell through the floorboards when f2, a division of Fairfax Holdings, withdrew its promised cash injection of AU$40 million. This prompted ANZ Banking Group, Hastings Fund Management and Disney Go Network to follow suit and withdraw from capital raising discussions.
The tormented ISP -- whose share price is rattling around the company's coffers at 25 cents -- halted trading on the ASX on June 6 pending an announcement. Eisa said today that its future lies with "the company merging with another" at an Annual General Meeting held in Sydney. Acting chairman Evan Reese told shareholders: "We are now talking to interested parties and expect to make an announcement on eisa's future soon."
However, this news won't put the lid on widespread speculation that the ISP may have to sell up and ship out of the ISP arena for good.
Industry speculation was rife about what would be talked about behind the closed doors at today's AGM as originally the AGM was called to discuss, amongst other things, the re-election of company Directors and business relating to the then proposed acquisition of OzEmail's Internet business.
The agenda was thrown into turmoil following news of the sunken deal and recent resignations of John Pascoe and Michael Ball from the board of directors -- due to ill health.
Shareholders were also told that the company was taking steps to recover the AU$20 million deposit retained by OzEmail as part of the deal's termination. "I cannot go into more detail as it is now a legal matter and I cannot make any further comment," said Reese.
Reese didn't deign to make any comment on when the company's share suspension would be lifted.
Yesterday, the battling ISP denied that it holds any responsibility for the debts of the Edge group in Australia. Edge has gone into receivership and owes AU$1million to a secured creditor Cash Resources Australia and is estimated to owe AU$40 million all round.
Edge Australia's director and owner, Johnson Wang, is a Director of eisa and also the representative of eisa's majority shareholder, Edge Australia.
"Edge Australia is a separate group from eisa. Eisa does not have an investment in Edge Australia. Moreover, eisa is not responsible for the debts of any Edge company," the ISP said in a statement to the ASX.
Edge Technology entered into voluntary administration yesterday and announced it expects to be liquidated within the week.
