Victor Aghtan, founder of Victorian IT distributor Westan will retire on completion of the proposed sale of his company to telecommunications provider, Wintech Group.
Aghtan, who this year celebrates his company's 20th anniversary, will stay on as a board member of digital services provider Hyro but will relinquish other business activities.
The ASX-listed Wintech this week told the market it would buy the privately-owned Westan through a share agreement with Dayspan Holdings, a WA company. It follows three months of discussions.
"I made my intentions fairly clear to people in the market. I've been in the industry for 20 years, it's time to call it a day," Aghtan said.
"I have mixed feelings," he said. "You've grown the company, you've nurtured it, it's like your child. I guess when you grow older you don't want to look after it any more."
In a statement to the ASX on 30 June, Wintech said the price was $5 million through a capital raising. It has placed a refundable deposit of $500,000.
Upon completion in September, Westan will be a wholly-owned subsidiary of the group.
Asked if recessionary pressures speeded up his retirement, Aghtan said, "not at all, especially since Westan is still doing well".
"We're not a pure IT distributor, we're consumer electronics play as well. Surprisingly, despite the recession, consumer electronics is doing well."
It is subject to the completion of due digilence, capital raising and approval from shareholders and regulators.
"My son will remain here, he will carry on his role as national sales director," said Aghtan.
Following an independent report Wintech proposes to convene a shareholders' meeting in September to approve the transaction.
Westan was established in 1989 and has branches and warehouses across Australia.
Issue: 277 | March, 2010