Wholesale telecommunications and cloud services provider Inabox has said it is considering selling off parts of its business after receiving "informal approaches" from interested parties.
According to Inabox, the interest in buying out the company is due to its low share price as well as "market dynamics which continue to drive industry consolidation".
The company said it is now in preliminary discussions with potential buyers.
"Having considered various scenarios with the assistance of its advisers, the board is of the view that the sale of one or more of the company's businesses on terms acceptable to the board could potentially unlock significantly more value for shareholders than has been reflected in the recent price range of the company's shares," Inabox said in a statement on Wednesday to the Australian Securities Exchange (ASX).
Inabox, whose company includes the Telcoinabox, Hostworks, Anittel, iVox, and Neural Networks brands, said that in the meantime its businesses are "showing promising momentum".
In February last year, Inabox had raised AU$4 million[1] via a private placement to help cover its AU$7 million acquisition[2] of cloud services company Hostworks.
At the time, the company said the acquisition would allow it to extend its own cloud services and strengthen its position in the South Australian market thanks to Hostworks' 24/7 networks operation centre located in Adelaide.
The Hostworks acquisition also included associated companies from BAI Communications, and involved Inabox paying AU$5 million upfront and AU$2 million over an 18-month period beginning in FY18. The acquisition was expected to bring total revenue to AU$119 million in the first year.
This was soon followed by its AU$1.5 million acquisition of Logic Communications[3] in March last year,