“The receiver is continuing to work on an urgent basis to realise value for OneVue and we will continue to keep the market updated,” OneVue said in a statement lodged with the ASX.
Sequoia’s chief executive Garry Crole said he would like to see OneVue keep hold of the acquired stock but Sequoia was willing to buy back 10 per cent if the stock went to market. Mr Crole said buyers were already circling the remaining 9 per cent that could be acquired relatively cheaply as the stock price takes a battering.
“We’re very happy to have OneVue as a shareholder if they decide to keep the shareholding, very good, if not we’ve got other people that are interested in the holding,” Mr Crole said.
“It just means we’ve got selling pressure on our stock.”
Mr Crole said there had been some warning signs that Sargon was not faring well.
“It didn’t come as a shock,” Mr Crole said of the company’s collapse.
“I did expect Sargon to trade their way out but the fact they didn’t settle on the OneVue purchase on four or five occasions and continued to extend it made us unsure of their ability to fulfil their obligations.”