Telstra to sell NZ unit for $668m

Telstra to sell NZ unit for $668m

Dylan Bushell-Embling  |   July 12, 2012
telecomasia.net
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 Review reported, 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.
Dylan Bushell-Embling
Watch the best moments from the 5th Annual Telecom Asia Readers' Choice Awards

SignUpTAenews

Frontpage Content by Category with Image

Google has deployed StreetView cameras to allow couch potatoes to go hiking
Telecomasia.net full website

© 2012 Questex Asia Ltd., a Questex Media Group company. All rights reserved. Reproduction in whole or in part is prohibited. Please send any technical comments or questions to our webmaster.