Vodafone & 3 Australia merge

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sbiddle

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#30456 9-Feb-2009 12:49

For those who aren't aware Vodafone and 3 Australia have just announced a merger and will be joining forces.

There doesn't seem to have been any mention yet or announcement from Telecom as to what this could mean - Telecom NZ own 10% of Hutchinson Australia.

If they are going to be bought out? If so this this could be significant cashflow back into the business. If they are still going to be part of the merged operations then Telecom NZ now own part of Vodafone Australia's business. How ironic!

ockel

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#194890 9-Feb-2009 13:21

So Telecom owns 10% of a listed entity worth A$100m (even after its gone up 8% on the merger announcement). I'm pretty sure that A$10m is not a lot of cash to be released even if Telecom decides to exit.

If they remain as shareholders then they will rank behind Vodafone Australia and Hutchison Whampoa (as significant debtholders) for any dividends or residual value. I think the only thing Telecom gains from this is, as you rightly point out, the irony.

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Jama

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#194900 9-Feb-2009 14:07

Even more of a mystery is how this will affect Telstra?

Telstra own 50% of 'Hutchison 3G Australia Pty Ltd', they paid US450M for it in 2004.

Telecom owns 10% of 'Hutchison Communications (Australia) Pty Ltd' the parent company who owns the other half of 'Hutchison 3G Australia Pty Ltd'

So it is sort of a Telstra, Telecom, Vodafone, 3 tie-up.

nzbnw

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#194950 9-Feb-2009 18:25

There are a number of issues to think about here including:

1) Telecom’s 10% stake in Hutchison Telecommunications Australia Ltd (note: this is the parent company of ‘3’ AU)·

2) 3’s proposed roaming agreement onto Telstra’s W850 is now unlikely to eventuate·

3) What’s happening to 3’s W2100 network? Talk it 3 customers will be shifted across to the VFAU network, leaving the 3GIS W2100 network (JV between HTAL and Telstra) to Telstra.·

4) Can VFAU, Telstra, Telecom and HTAL co-exist, if not who will leave first?

Interesting time's ahead across the ditch!

nzbnw