Family To Net Lion's Share Of Mobileworld's $30m Listing
The Age
Monday April 10, 2000
One of the country's biggest independent mobile-phone retailers, Mobileworld Communications, plans to raise $30 million by listing on the Australian Stock Exchange next month.
Almost a decade after the retailer opened its doors, and after some financial difficulties with its now defunct wholesale division, Mobileworld's chief executive, John Ilhan, 35, will pocket $20 million of the float proceeds and emerge with a 62.5per cent controlling stake.
``Yeah, it's actually not bad," Mr Ilhan said. ``But it's been nine long, hard years for the family."
Ilhan family members own some of the Crazy John's Melbourne stores, while Mr Ilhan's sister, Ayse Kirmizi, is an executive director.
His sister-in-law, Linda Sequenzia, is a senior executive.
The $10million balance of the float proceeds will help pay for store refurbishments and store openings in Sydney and Brisbane.
Mr Ilhan said Mobileworld wanted to open stores in Adelaide next year.
The company sells mobile-phone handsets and terms contracts through its 16 Crazy John's stores in Victoria, and operates under the Mobileworld brand name in the small to medium-sized business market.
It boasts about 130,000 active subscribers, and is one of the top four premium dealers for Telstra.
Mr Ilhan said he expected Mobileworld would grow net subscriber numbers by 30per cent in the next 12 months.
Forecasts supplied in the prospectus indicate the company expects net profits to rise 18per cent to $5.2million this financial year, from 21per cent higher revenue of $51.8million.
Directors said Mobileworld expected to pay an interim dividend of 2.5 cents a share next April.
Mobileworld is selling 30 million shares at $1 each. As well, it has issued directors and executives with 1.9 million options.
It is issuing a further 100,000 options to Hartley Poynton as the underwriter.
Mr Ilhan has agreed not to sell down below 51per cent for at least two years, although he indicated he was likely to lower his holding from 62.5per cent if there were a broad-based share offering to fund further expansion.
Mobileworld's prospectus noted Mr Ilhan last year settled claims associated with the 1997-99 administration of MWA, the former wholesaling arm that is no longer associated with Mobileworld.
Under a deed of arrangement, about $1million was repaid of $3.5million owed to unsecured creditors.
MWA is now said to be solvent.
© 2000 The Age
