Telecom has entered into a binding agreement to sell AAPT for A$450 million to TPG Telecom Limited. The agreement is free of conditions and is expected to be complete by 28 February 2014.
This transaction, which follows the sale of AAPT’s consumer division in September 2010, represents approximately 6.4x AAPT’s current recurring annualised EBITDA run-rate of approximately A$70m.
“The sale of AAPT is consistent with strategy and with our desire to focus principally on our New Zealand operations and on the needs of New Zealand customers,” said Telecom chief executive, Simon Moutter.
Telecom anticipates that sale proceeds will be used to repay debt. The company will provide further guidance on the use of the proceeds at its H1 FY14 profit announcement on 21 February 2014.
Following a period of cost reduction and operational improvement, AAPT has been focused on a revenue growth plan within business and wholesale markets, using its strong network capabilities.
“AAPT is performing well. David Yuile and his management team have done an impressive job during the last three years to simplify, stabilise and reshape the company. By focusing on AAPT’s wholesale and corporate businesses, the management team has grown the customer base and, most importantly, driven profitable growth,” said Moutter.
“We are very energised by the progress we have made and the massive turnaround AAPT has experienced after several years of hard work and tough decisions. AAPT is now ready for another chapter in its evolution and we look forward to the future,” said AAPT CEO David Yuile.