Takeover bid: mobile distributor Cellnet halts trading

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Takeover bid: mobile distributor Cellnet halts trading

Mobile distributor Cellnet has halted share trading on the ASX in preparation for a possible takeover.

The company informed the ASX that a potential acquisition was incoming, and that trading should be halted until it makes a full announcement on Friday. Shares were trading at 26 cents before the announcement.

Cellnet distributes mobile products and accessories from vendors such as Plantronics, Lexar, and Otterbox. Its reseller partners include big names in Australia’s telecommuncations industry such as Telstra, Optus and Vodafone, and national retailer JB Hi-Fi and Officeworks.

The company has gone through self-confessed “difficult trading conditions” over the past year following the closure of Dick Smith stores, one of its key reseller partners.

Revenue in the 2016 financial year was down $3 million to $75 million. However, profit improved by six percent, growing to $1.7 million.

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