ModusLink concludes strategic review, will not pursue sale
ModusLink concludes strategic review, will not pursue sale
As previously announced, the company's Board of Directors has been exploring strategic alternatives. As part of the review process, the company and its financial advisors engaged in detailed reviews and discussions with both potential financial and strategic partners. The Board has now completed this process and concluded that the best opportunity to enhance the value of its operating business is the continued execution of the company's business plan, including the turnaround actions discussed above, and it is not currently pursuing the sale of its operations. The Board believes that the company possesses a strong platform for growth and world class capabilities that are not appropriately valued in the market.
K ModusLink at advanced stage in CEO search
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16:45 EDT MLNK ModusLink in advanced talks to sell Tech for Less operations
The company is increasing its focus on its core global supply chain and logistics business. As part of this focus, ModusLink intends to sell its Tech for Less operations and is in advanced discussions with a third party regarding a transaction. The company will continue to offer a strong remarketing capability to its clients through partnerships. Although the proceeds from a sale are not material to its cash position, ModusLink believes a sale would immediately improve the company's profitability. In fiscal 2012, the Tech for Less operations generated revenue of $25.9M and an operating loss of $11M.
16:43 EDT MLNK ModusLink to reduce employee costs 13%-16%
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16:40 EDT MLNK ModusLink concludes strategic review, will not pursue sale