Westan’s founder says he has no short-term plans to sell and will remain focused on business as usual for the foreseeable future.
The comments come three months after Victor Aghtan announced plans to sell-off the business to ASX-listed entity, Wintech Group (ASX: WTG). The company’s main subsidiary, Magnafield Technology Distribution, was placed into receivership on July 30, quashing the deal between the two parties.
Under the proposed arrangement, Wintech would have purchased the distributor on a willing-buyer-willing-seller basis, with Westan’s net tangible asset value valued at $5 million.
Deloitte Touche Tohmatsu was brought in as receiver and manager for MTD at that point. Company representative, Tim Norman, confirmed MTD ceased to trade on his appointment.
The receivers are now proceeding to realise the assets of the business, which consist principally of the debtor book, Norman said in a statement to ARN. According to its preliminary full-year financial report, Wintech’s total revenues were just $130,000, while its net loss exceeded $11.7 million. Over $9 million of this was attributed to an impairment of goodwill. The group claimed to have $510,000 in total current assets.
In its financial statement, Wintech said receivers were brought in after MTD defaulted under the National Debtor Finance Facility.
Aghtan said Westan’s key vendor relationships, including Samsung and Western Digital, remained intact and that it had gone back to a business-as-usual mentality. The failure of the original sale has put Aghtan’s retirement plans back on the shelf.
“Wintech has taught me a good lesson – to thoroughly check the background before you get involved,” he said.
Westan has however, recently relocated its NSW premises from Carnarvon Street, Silverwater, to what it claims are bigger facilities on Beaconsfield Street, Silverwater.