Bigblu (AIM:BBB) sank almost 12% on Monday morning after announcing the sale of its Norwegian operations and coinciding departure of chief executive Andrew Walwyn.
Business and consumer broadband provider Brdy Group is to be sold for £1 to an entity led by the firm’s Norwegian management and former boss Walwyn, Bidblu said Monday.
This is part of a wider bid to cut costs, with the wing having incurred a £3.3 million loss last year, taking the total for Bigblu to £4.7 million.
Bigblu added it would be eligible for performance-linked payments of up to roughly £200,000 from the Norwegian business.
“[This] allows the company to exit from its Norwegian operations without incurring the costs associated from potentially closing it down,” new chief executive Frank Waters said.
“It also enables the board to focus on realising value from its remaining assets, being Skymesh in Australia and its minority shareholding in Quickline.”
Shares fell 11.9% to 37p on the news.