Australian operator Telstra has agreed to sell its New Zealand unit, TelstraClear, to Vodafone NZ for NZ$840 million ($667.9 million).
Vodafone NZ has arranged to acquire TelstraClear’s voice and data based services, network infrastructure and New Zealand customer-base, Telstra revealed today.
A merged company is expected to have annual revenues of over NZ$2 billion, National Business Reviewreported, citing analysts.
The combined entity would meanwhile have a 26% share of the fixed-line market, making it the first substantial challenge to incumbent Telecom NZ's effective monopoly on the segment.
Vodafone NZ will meanwhile gain a more convincing presence in the corporate market.
Telstra has agreed to work with Vodafone NZ to ensure service continuity for TelstraClear customers while the ownership transition takes place.
The merger between two of New Zealand's larger service providers still requires regulatory approval, which Telstra said is expected to take a number of months.
Telstra also revealed that subject to completion adjustments, Telstra will book an accounting impairment of around A$130 million ($132.9 million) each in FY12 and FY13, largely due to unrealised foreign currency losses.