Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.
Telecom announces sale of AAPT for A$450 million
Posted on 9-Dec-2013 10:30. | Tags Filed under: News.



Telecom New Zealand has entered into a binding agreement to sell AAPT for A$450 million to TPG Telecom Limited.

This transaction represents approximately 6.4x AAPT’s current recurring annualised EBITDA run-rate of approximately A$70m. The agreement is free of conditions precedent and, subject to the finalisation of routine mechanical steps, the transaction will complete on 28 February 2014.

As announced at its investor strategy day in May 2013, Telecom’s strategic ambition is to become a growing New Zealand company and a future-oriented, competitive provider of communication, entertainment and IT services delivered over its networks and the Cloud.

“The sale of AAPT is consistent with this 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.
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 Mr Moutter.

AAPT CEO David Yuile said he believed AAPT was now well-positioned in the Australian market as a business and wholesale telecommunications infrastructure company.

“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.”

Telecom anticipates in the first instance sale proceeds will be used to repay debt. Telecom will provide further guidance on the use of the proceeds at its H1 FY14 profit announcement on 21 February 2014, within the context of its strategic turnaround programme, and the intention to maintain both a conservative capital structure and sustainable dividend.

This transaction follows the sale of AAPT’s consumer division in September 2010.



comments powered by Disqus


Trending now »

Hot discussions in our forums right now:

Big drop in Sky subscribers
Created by surfisup1000, last reply by quickymart on 25-May-2016 07:28 (488 replies)
Pages... 31 32 33


Smoking - Ban it?
Created by BlueShift, last reply by blakamin on 23-May-2016 22:06 (96 replies)
Pages... 5 6 7


New Vehicle Registration Prices July 2016
Created by UHD, last reply by nunz on 22-May-2016 19:59 (68 replies)
Pages... 3 4 5


Laptop wont connect to Wi-Fi, other devices will
Created by Finch, last reply by richms on 24-May-2016 12:15 (16 replies)
Pages... 2


So I got 'hacked' last night...
Created by Disrespective, last reply by joker97 on 24-May-2016 11:31 (14 replies)

Network issues on MR
Created by pab, last reply by jmh on 21-May-2016 16:28 (29 replies)
Pages... 2


What's your house worth?
Created by BlueShift, last reply by kingjj on 25-May-2016 06:02 (27 replies)
Pages... 2


Is HD ticket worth the extra 10 bucks?
Created by Krishant007, last reply by Spyware on 24-May-2016 14:30 (68 replies)
Pages... 3 4 5