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:

Gareth Morgan is a genius
Created by Satch, last reply by frankv on 9-Dec-2016 23:18 (152 replies)
Pages... 9 10 11


NZ Prime Minister John Key Resigns
Created by ajobbins, last reply by elpenguino on 9-Dec-2016 12:44 (217 replies)
Pages... 13 14 15


The President Of The USA - Who do you think?
Created by TimA, last reply by DarthKermit on 8-Dec-2016 16:22 (909 replies)
Pages... 59 60 61


Spark wireless broadband and home /lan access: CGNAT limitations
Created by yokkem, last reply by BarTender on 8-Dec-2016 15:57 (19 replies)
Pages... 2


Spark not planning to deploy native IPv6 at all. Ever.
Created by Erayd, last reply by sbiddle on 7-Dec-2016 20:57 (19 replies)
Pages... 2


Woooaaahh earthquake 2016-11-14
Created by Fred99, last reply by DarthKermit on 9-Dec-2016 16:16 (471 replies)
Pages... 30 31 32


Wilson's Car Park - When Free is not free
Created by nzkiwiman, last reply by cr250bromo on 9-Dec-2016 09:30 (51 replies)
Pages... 2 3 4


JB Hifi Cost & GST Sale - 7th Dec
Created by Finch, last reply by Kopkiwi on 7-Dec-2016 15:11 (16 replies)
Pages... 2