Oceania Capital gets ACCC nod to sell security unit

Private equity firm Oceania Capital (ASX:OCP) has learned the ACCC does not intend to intervene in the sale of its electronic security business to Tyco International Security for $171m

Private equity firm Oceania Capital Partners (ASX:OCP) has been given ACCC clearance to sell its electronic security division Signature Security for $171 million.

The ACCC has informed the company that it does not propose to intervene in the proposed sale to Tyco International Security Group, unless new information comes to light that convinces it to act.

But Oceania Capital said it still requires some third-party consents before the sale can be completed.

Signature Security supplies products including alarm systems, CCTV and video and surveillance and access control devices.

It has monitoring stations in Sydney, Perth and Auckland, and currently monitors around 90,000 premises nationwide. Oceania Capital owns 95.4 per cent of Signature Security, with management owning the rest.

The sale was first announced in February. At the time, Oceania said the valuation was 11.6 times reported FY10 ebit, and the $0.90 per share expected to be realised after debt and transaction costs was equal to its carrying value of the holding.

Oceania also disclosed it would consider returning the proceeds of the sale, minus the company's cash needs, to its shareholders.

OCP shares grew 0.45 per cent in Friday's trading to $2.210.

Oceania also owns investments in healthcare IT company iSOFT (ASX:ISF) and Baycorp, but has endorsed the $0.17 per share takeover proposal for iSOFT from US IT services group CSC.

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Tags businesssellingacccOceania Capital PartnersOceania CapitalTyco International Security GroupSignature Security

More about Australian Competition and Consumer CommissionBaycorpCSC AustraliaCTVOFTTyco

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