CALGARY, May 28, 2013 /CNW/ - Axia NetMedia Corporation (Axia) announces that its wholly-owned subsidiary, Axia NGNetworks Spain (Axia Spain) has entered into a binding letter agreement to sell its 35% stake in Xarxa Oberta (Xarxa) to its partner in the venture, Imagina Media Audiovisual (Imagina), for aggregate cash consideration of €5.3 million (approximately CDN$7.1 million) (the Transaction). The Transaction is subject to approval by the Catalan regional government and to entering into a definitive share purchase agreement on customary terms satisfactory to Axia Spain and Imagina.
Xarxa was established in Catalonia, Spain in 2010 to build, operate and sell services to government and private sector customers over a regional fibre optic network. Axia and Imagina's partnership contemplated the alignment of their respective ownership interests in Xarxa once Xarxa was operational and this realignment facilitated Imagina's offer to buy Axia's stake in Xarxa.
Art Price, Chairman and CEO of Axia, commented "While we are pleased with the development of Xarxa Oberta and believe that it has a good future, Axia and Imagina agree that the challenges it faces would be optimally met under the singular ownership of Imagina. Axia's interests in Europe will now be fully focused through Covage, our major operation in France."
The transaction is expected to close on July 25, 2013. Proceeds from the Transaction represent Axia's equity and shareholder investment in Xarxa with interest up to the time of close.
About Axia
Axia owns, operates and sells services over fibre optic communications infrastructure. Axia trades on the Toronto Stock Exchange under the symbol "AXX".
This News Release contains forward-looking statements, including, without limitation, statements containing the words "should", "believe", "anticipate", "may", "plan", "will", "continue", "intend", "expect", "estimate" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. These statements are based on our current expectations, estimates, forecasts and assumptions about the operating environment, economies and markets in which we operate and are subject to important assumptions, risks and uncertainties that are difficult to predict. Examples of these statements would include those where Axia forecasts its success and timing in winning new NGN business, the timing of completion and estimated total costs of our networks, the revenues and operating costs associated with these networks over time, and Axia's ability to generate future cash flows and avail itself of other financing alternatives given current market conditions. The assumptions, risks and uncertainties that could cause actual results to differ materially from the forward-looking information, include, but are not limited to, changes in customer markets, changes in demand for our services, our inability to deliver services in a timely and cost efficient manner, technological change, general economic conditions and other risks detailed from time to time in our ongoing filings with the Canadian securities regulatory authorities, including those in our Annual Information Form, which filings can be found at www.sedar.com. Given these assumptions, risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise.
SOURCE: Axia NetMedia Corporation
