AUSTRALIAN companies are being exhorted almost daily by the government to go out and discover Asia. So why is the Asian arm of Datacraft, one of the first Australian companies to head north, partly buying itself out? The answer, according to Datacraft Asia managing director Des Althorp, is that the intricate deal, which uses a mix of debt, equity and venture capital, is borne out of the different economic conditions in Asia and Australia.
And it could be a model for other Australian companies in the same position.
While many companies are desperate to retain control of their operations in the region - which may be the only growth area they have - Datacraft has realised the benefits of a more hands-off approach, he says.
The deal also positions the company for flotation in Hongkong or Singapore in two or three years, Mr Althorp says.
Datacraft Asia is a new company, headquartered in Hongkong, which has bought the six country subsidiaries from the Australian parent.
Datacraft companies build data networks using a mix of their own and other people's equipment.