Axia Announces Agreement to sell its interest in OpenNet

CALGARY, Aug. 22, 2013 /CNW/ - Axia NetMedia Corporation (Axia) announces that 
its wholly-owned subsidiary, Axia NGNetworks Asia Pte. Ltd. (Axia Asia), SPH 
Net Pte. Ltd. (SPH), SPT Net Pte. Ltd. (SPT) (Axia Asia, SPH and SPT 
collectively, the Vendors) have entered into a share purchase agreement (the 
Agreement) with CityNet Infrastructure Management Pte. Ltd. in its capacity as 
Trustee-Manager of NetLink Trust (the Purchaser) to sell their aggregate 70% 
interest in OpenNet Pte. Ltd. (OpenNet) to the Purchaser. Pursuant to the 
Agreement, SPH and SPT will sell their respective 25% and 15% interests in 
OpenNet to the Purchaser on the same terms. 
Axia Asia will sell its 29,744,999 ordinary shares of OpenNet representing 
approximately 30% of the issued and paid-up share capital of OpenNet, to the 
Purchaser, for aggregate cash consideration of approximately S$38million 
(approximately CDN$31 million) (the Transaction). 
Art Price, Chairman and CEO of Axia, commented "It is already clear that 
Singapore's Next Generation Network strategy is going to be a great success 
for consumers. Customers in Singapore are already benefiting from enhanced 
choice of both services and service providers. Market adoption is running 
well ahead of forecasts. When I agreed that Axia would lead the OpenNet 
Consortium, it was because Axia's approach to NGN solutions was aligned with 
Singapore's policy objectives and we had SPH and SPT as partners. Axia 
accepted the purchase offer based on OpenNet having successfully achieved its 
primary mandate of deploying a ubiquitous fibre network in Singapore, our 
partners' preference to sell based on this achievement, our preference to hold 
majority interests and Axia having equally attractive alternative uses for the 
capital currently deployed in Singapore. Upon completion of the sale, Axia's 
Board will determine the best use of proceeds for the benefit of Axia 
OpenNet, Singapore Telecommunications Ltd. (SingTel Parent) and the Purchaser, 
have jointly filed a consolidation application (the CA) with the 
Info-communications Development Authority of Singapore (the IDA) seeking 
regulatory approval for the purchase of 100% of OpenNet by the Purchaser. 
The IDA will hold a public consultation as part of the approval process. 
In addition to regulatory approval by IDA, the Transaction is subject to the 
following additional conditions precedent including, but not limited to: (i) 
the completion of due diligence investigations of OpenNet by SingTel and the 
Purchaser; (ii) receipt by OpenNet and the Purchaser of the written consents 
of the Monetary Authority of Singapore and any other relevant governmental or 
regulatory authority necessary to complete the Transaction; and (iii) 
determination by SingTel Parent that the terms of the regulatory approval by 
the IDA are acceptable to SingTel Interactive Pte. Ltd. (SingTel). 
Concurrently, SingTel will sell its interest in OpenNet to the Purchaser. 
The Agreement expires on November 30, 2013, unless otherwise extended by the 
agreement of the Vendors and the Purchaser. 
About OpenNet 
OpenNet is a nationwide fibre to the premise network in Singapore that sells 
dark fibre services to residential, commercial and government end users. The 
network passes approximately 1.2 million residential and 26,000 commercial 
About Axia 
Axia owns, operates and sells services over fibre optic communications 
infrastructure. Axia trades on the Toronto Stock Exchange under the symbol 
This News Release contains forward-looking statements, including, without 
limitation, statements containing the words "should", "believe", "anticipate", 
"may", "plan", "will", "continue", "intend", "expect", "estimate" and other 
similar expressions which constitute "forward-looking information" within the 
meaning of applicable Canadian securities laws. These statements are based on 
our current expectations, estimates, forecasts and assumptions about the 
operating environment, economies and markets in which we operate and are 
subject to important assumptions, risks and uncertainties that are difficult 
to predict. Examples of these statements would include those where Axia 
forecasts its success and timing in winning new NGN business, the timing of 
completion and estimated total costs of our networks, the revenues and 
operating costs associated with these networks over time, and Axia's ability 
to generate future cash flows and avail itself of other financing alternatives 
given current market conditions. The assumptions, risks and uncertainties that 
could cause actual results to differ materially from the forward-looking 
information, include, but are not limited to, changes in customer markets, 
changes in demand for our services, our inability to deliver services in a 
timely and cost efficient manner, technological change, general economic 
conditions and other risks detailed from time to time in our ongoing filings 
with the Canadian securities regulatory authorities, including those in our 
Annual Information Form, which filings can be found at Given 
these assumptions, risks and uncertainties, readers are cautioned not to place 
undue reliance on such forward-looking statements. Unless otherwise required 
by applicable securities laws, we undertake no obligation to publicly update 
or revise any forward-looking statements either as a result of new 
information, future events or otherwise.

SOURCE  Axia NetMedia Corporation 
For further information, please visit Axia's website, or 
Alan Hartslief Chief Financial Officer Axia NetMedia Corporation (403) 
To view this news release in HTML formatting, please use the following URL: 
-0- Aug/22/2013 18:51 GMT
Press spacebar to pause and continue. Press esc to stop.