AUSTRALIA’S HOME SECURITY INTL. SELLS 49% STAKE IN NESS SUBSIDIARY
Home Security Intl. Inc. (HSI) announces that it has completed the sale of 49 percent of its subsidiary, Ness Security Products Pty. Ltd. to HIH Insurance. The completion of the previously announced sale of 46 percent of Ness will reduce the company’s debt by $13 million (Australian) in relation to: a) a note representing vendor finance for the company’s purchase of FAI Finance Corp. Pty Ltd. in 1997; and b) short-term financing provided by HIH Insurance. The company has received the $4.5 million cash component due under the sale agreement. The company will receive a further $2.5 million in cash in January. FAI Finance, a wholly owned subsidiary of HIH Insurance, has agreed to provide the company with retail consumer finance support to a limit of $100 million.
The completion of this agreement maintains and confirms the company’s access to a relationship that will facilitate the continued finance of its security package in Australia. The company also reports that it has recommended discussions with a major corporation within the security industry in relation to forming a strategic alliance within the residential security market.
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