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DAVNET LIMITED STRENGTHENS POSITION IN CANADA –
Davnet to wire Scotia Plaza
Toronto, ON – December 12, 2000 - Davnet Limited (“Davnet”), an international Internet Protocol-based carrier, today announced the strengthening of its presence in Canada through the acquisition of business assets and certain rights from R&B Tel Communications Inc (“R&B Tel”) including the license to wire Scotia Plaza, a major commercial property in Toronto’s central business district. Davnet Limited has also acquired all rights from R&B Tel in relation to the proposed joint venture between Davnet and R&B Tel. The deal confirms Davnet’s 100% ownership of Davnet Canada Inc. Additionally, R&B Tel’s principal Jamie Torpey will continue to serve as President of Davnet Canada Inc.
“Davnet’s strengthening of its position is a testament to the significant opportunity ahead”, said Jamie Torpey, President, Davnet Canada Inc. “Looking ahead, we firmly believe the company’s exceptional management team, coupled with our demonstrated successes worldwide, will position Davnet as Canada’s leading provider of competitive communications solutions.”
The consideration for the acquisition is 3,625,408 ordinary shares in Davnet Limited at a price of A$1.44 per share (approximately C$1.175 per share), valuing the acquisition at A$5,220,587 (approximately C$4,260,000).
“We are delighted to strengthen our presence in Canada as it means corporate customers in the country’s leading central business districts can more readily experience the power of Davnet’s leading-edge, broadband services delivered on an Internet Protocol platform and network architecture,” said Robert H. Turner, Group Chief Operating Officer, Davnet Limited. “This move also represents an important component in our global strategy of being able to deliver a portfolio of reliable, innovative, scalable, broadband solutions to business users in leading cities in Australia, Asia and North America. We are particularly delighted we will launch our Canadian business by rolling out to corporate customers in Scotia Plaza. This is a prestigious building and the building management have been most supportive.”
Davnet eventually expects to serve more than 300 commercial buildings in Canada’s five major cities. The first are being rolled out in Toronto. Vancouver and Calgary are expected to be served during the first half of 2001, and Montreal and Ottawa later in 2001.
“Jamie has been instrumental in the establishment of our Canadian operations. His role as President and as a Director will assure business management continuity and a laser-like focus on alliances with building property owners,” added Mr. Turner. “Jamie brings a wealth of entrepreneurial and deal making experience as well as an understanding about the Canadian market and our target properties in central business districts in locations such as Toronto.”
Canada attracted Davnet because of both the potential demand for its products and services and the nature of its commercial property market. According to The Yankee Group in Canada, Canada’s business telecommunications market is worth approximately C$19.8 billion and is growing at 5-6% each year, with some segments, such as business Internet and web hosting increasing at more than 30% each year.
Mr. Les Rozsa, Director, Real Estate, Scotiabank, “Scotia Plaza is excited about the services to be offered by Davnet. We are pleased to be able to offer Davnet’s products to our tenants in the building.”
Canada’s commercial real estate market is highly concentrated with eight companies owning and managing a substantial majority of the commercial floor space. “To date, we have commenced negotiations with five of the eight in order to secure access to their properties,” said Mr. Turner.
About Davnet
Davnet, the international Internet Protocol-based carrier, is a rapidly growing facilities-based provider of high-speed telecommunications and enhanced data services to large- and medium-sized businesses located within premium multi-tenant office buildings in selected cities throughout Australia, Asia and North America. As at 30th June 2000, the Group was serving clients in 81 “live” buildings in the Australian cities of Sydney, Melbourne, Brisbane and Perth, ten in Hong Kong and two in the USA. It had licenses for a further 75 buildings including premises in Canada and in Singapore. Davnet offers integrated and scalable data services delivered through in-building broadband communications networks that it owns and/or operates. In addition to high-speed Internet access, Davnet offers enhanced services such as local and international Internet Protocol-virtual private networks, voice and fax over Internet Protocol, video and telephone conferencing, unified messaging, hosting, co-location, video on demand, video telephony and design/e-commerce services and consulting. It also offers information and data storage, protection and management solutions. The principal company in the Davnet Group is Davnet Limited. Davnet Limited commenced trading under the code DVT on the Australian Stock Exchange in December 1998. In November 1999, NTT Communications Corporation of Japan, the world’s largest carrier, acquired a 49 per cent interest in the Group’s Australian subsidiary, Davnet Telecommunications Pty Limited. In September 2000, NTT strengthened its relationship by acquiring an option to roll up its existing interests into the listed entity, Davnet Limited. It also agreed to a further investment in Davnet Telecommunications Pty Limited. Davnet is a Cisco Powered Network Partner. The Davnet Vision is “We deliver reliable, innovative, scalable broadband solutions to business. Guaranteed!” For more information about Davnet, please visit www.davnet.com.au
About R&B Tel
Established in 1999, specifically to make strategic investments in emerging companies in the telecommunications space, R&B Tel prides itself on delivering true value to its shareholders. The company’s vision is powerful yet simple: Create shareholder value in an environment that encourages individual thinking, entrepreneurship and imagination. Today R&B Tel is a top-notch consortium of investors intent on creating and increasing shareholder value for those willing to seize numerous opportunities the company sees.
For further enquiries:
Peter Witton,
Vice President, Corporate Relations
Davnet Inc.
+ 852 90972014
peter.witton@davnet.com.hk
or
Jamie Torpey
President
R&B Tel
416. 645.3202
jamie.torpey@davnet.ca
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