Listed BPO firm to sell off assets in Australia

MANILA, Philippines—Listed business process outsourcing (BPO) firm Paxys Inc. has announced plans to sell off for a significant premium all of its business in Australia, representing about two-thirds of the company’s assets.

In a disclosure on Monday, Paxys said its wholly owned subsidiary Paxys NV had signed an agreement with SmartGroup Investments Pty Ltd for the sale of Paxys Australia for 84.9 million Australian dollars.

“The sale includes all of the subsidiaries of Paxys Australia, consisting of SmartSalary Pty Ltd, SmartFleet Management, SeQoya Pty Ltd, PBI Benefit Solutions, and Australian Vehicle Consultants,” the listed firm said in a disclosure.

As of end 2011, the consolidated net book value of Paxys Australia was at 34 million Australian dollars, or about P1.5 billion. This constituted 66 percent of Paxys’ total consolidated net assets.

Paxys shares fell 4.44 percent to close at 3.01 after the announcement of the sale.

The company’s latest financial statement showed that it lost P28 million from July to September 2011—a 217-percent reversal from its net income of P24 million a year earlier.

But the loss was caused by a one-time charge related to the impairment of certain assets.

During the same three-month period, the company said it was able to record an operating profit of P50 million.