Vodafone completes 100% Farmside buyout for extra $3M
- 17 May, 2018 04:30
Vodafone has reached an agreement with TeamTalk to buy the remaining 30 per cent stake in BayCity Communications, trading as Farmside, for $3 million.
The agreement comes almost a year after the telco giant purchased 70 per cent of Farmside for $10 million in cash, as reported by Reseller News.
As a part of this transaction, Vodafone retained the right to acquire the remaining 30 per cent for $3 million at any time within a three-year period, with the business now exercising that right.
“This agreement consolidates TeamTalk’s business,” TeamTalk CEO, Andrew Miller, said.
“It enables us to focus on our key priorities: rolling out our National Digital Tier III Network and under-grounding our Fibre Network in Wellington’s CBD, to deliver greater resiliency and additional services to customers.”
Going forward, Farmside will continue to operate as a separate entity to Vodafone in New Zealand.
“It’s business as usual for our customers and our team here in Timaru, we can continue to do what we love, which is connecting rural New Zealanders,” Farmside general manager, Jason Sharp, said. “This investment is a significant opportunity to enhance services and products available to our customers.
“It also drives home the importance of the Farmside brand, its value and level of trust within the rural community is significant, which Vodafone has recognised.”
According to Vodafone CEO, Russell Stanners, the investment “further deepens” the telco’s commitment to rural communities.
“Rural communities are important to us and this investment further deepens Vodafone’s long-standing commitment to them,” Stanners said.
“With Farmside now firmly a part of the Vodafone whanau, we can continue to deliver better outcomes for these communities and increase our presence in the rural broadband market.”
Currently, TeamTalk and Vodafone are “working closely together” to ensure the services provided by TeamTalk are successfully transitioned.
Stanners said Vodafone has no plans to make major changes at this time, with staff and operations continuing to be based in Timaru, and all the services Farmside currently offers to rural customers will continue.
The ownership change becomes effective from midnight 31 May 2018.
“Vodafone and TeamTalk would continue to work together on strategic opportunities where appropriate,” Miller added.