Menu
Telecom to buy PowerTel for A$357M

Telecom to buy PowerTel for A$357M

Telecom has reached an agreement to acquire 100 percent of ASX-listed voice and data carrier PowerTel for A$357 million (US$276 million).

Chief executive Theresa Gattung announced the plan to acquire the PowerTel shares which has been unanimously endorsed by the PowerTel directors, according to the company.

The proposal involves Telecom paying $2.30 per share in cash by way of a scheme of arrangement.

Telecom's chief financial officer Marko Bogoievski said the acquisition brings two "strongly complementary" businesses together and is a step towards the consolidation of the Australian telecommunications industry.

"It provides significant benefits to Telecom by enabling AAPT to leverage its investment in service capability and it gives us the scope over time to bring more of our customers onto the combined access network rather than servicing them through wholesale arrangements," Bogoievski said. "This is a very positive step for the development of our Australian business."

The transaction values PowerTel at approximately A$357 million including net debt and the acquisition will be funded by a combination of cash and Telecom's existing debt facilities.

Telecom has also entered into an option agreement to acquire 10 percent of PowerTel's shares on issue from its major shareholder TVG.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags telecom

Featured

Slideshows

Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
Show Comments