Receivers for embattled ASX-listed integrator, Commander (ASX: CDR), have confirmed the list of potential buyers is down to 10.
McGrathNicol was appointed receivers to Commander on August 7 and has since been preparing the company for sale. Partner, Peter Anderson, said due diligence was now underway and the process was still on track to achieve a sale by the end of October.
Last month, McGrathNicol announced it would look to sell the business in two parts: Its managed and professional services business, and its telecommunications business including the Commander national franchise network. At the time, receivers claimed 60 expressions of interest had been submitted.
Those who flagged an interest in acquiring parts of Commander include Data#3, UXC and Datacom. McGrathNicol declined to comment on those participating in the sale process.
However, questions have been raised by industry representatives over what the receivers have left to sell. According to one ARN source close to the company, most of Commander’s managed services contracts with federal and state government agencies and large corporates, such as Fosters, come up for renewal within the next 10 months.
In July, the first of Commander’s Group 8 outsourcing contracts with the Department of Agriculture, Fisheries and Forestry, went on the block. The next government contract up for grabs is expected to be with the Department of Environment and Heritage.
Many of Commander’s rivals, such as Data#3 and ComputerCorp, have also taken the opportunity to go after the integrator’s client base and staff.
With Vodafone’s recent purchase of a majority stake in telco retail chain, Crazy John’s, the list of potential buyers for Commander’s telco assets has also been reduced to Optus and Telstra, the source claimed.
In the meantime, equipment from Commander's warehouse in Dingley, Victoria, has been put up for sale on auction site, GraysOnline. The list includes pallets, pallet trucks and office furniture. The auction closes on September 22.