iiNet set to grab AAPT

Nicole McCormick
30 Jul 2010
Daily News

Australian ISP iiNet is on the verge of announcing a deal to buy a piece of local telco AAPT.

iiNet yesterday announced a two-day trading halt pending the announcement of a “potential acquisition.”

That acquisition is believed to be AAPT, 100% owned by Telecom New Zealand, whose shares have also been suspended.

According to the Australian, iiNet is set to acquire AAPT’s consumer assets for about A$60 million ($53.9m) in cash and debt.

AAPT operates over 350 DSL exchanges and has about 115,000 ADSL subs and 230,000 voice customers.

iiNet is believed to be ramping up its customer base – which includes 530,000 broadband subs – before the new national broadband network arrives.

In a statement to the market, TNZ said it is considering offers for AAPT that were in the best interests of shareholders. It does not consider AAPT to be a core asset.

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