The ISP and international calls carrier lost NIS 6-7 million on the venture.
NetVision Ltd. (TASE: NTSN) has pulled out of Georgia, after its business there failed to developer as planned. The Internet services provider and international calls carrier lost NIS 6-7 million on the venture.
NetVision mostly operates in Israel. It established international calls operations in Georgia through Alex Developments Georgia, which held a communications license. NetVision entered Georgia in March 2009, acquiring 50% of Zennor, a communications company, which owns Alex Developments. NetVision later increased its investment, based on milestones, to 50.1%. Altogether, NetVision invested $2.25 million.
Having decided to leave Georgia, NetVision will have to figure out how to implement the decision. One option is find a buyer for its Zennor holding, another is to shut down both Zennor and Alex.
Published by Globes [online], Israel business news - www.globes-online.com - on January 20, 2011
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