REGINA – SaskTel said Monday it has reached a sale agreement for its expansion division (formerly called Navigata) for $1.25 million.
SaskTel placed began looking for a buyer in January 2009 and after several months of due diligence, an agreement was reached with a recently formed British Columbia-based corporation headed by Peter Legault, a long-time telecom (GST Telecom) and cable financier/entrepreneur (First Choice, Canbras). The new company will acquire the Navigata Communications trademark as part of the transaction, and intends to retain the brand in the British Columbia marketplace.
SaskTel purchased Navigata in 2001 and has invested a total of $97.5 million in operational and capital funding. Total cash losses are approximately $90.8 million.
Noting the losses and the sale price, "This is why our government has moved to a ‘Saskatchewan First’ Crown investment policy, to ensure money is being invested and jobs are being created in Saskatchewan, not B.C.," Minister Responsible for SaskTel Don Morgan said in a statement.
