TelstraClear sold to Vodafone for $840m: Updated
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Australian telco Telstra will sell TelstraClear, its New Zealand subsidiary, to Vodafone New Zealand for $840 million.
In a media statement Telstra says Vodafone New Zealand will acquire TelstraClear’s voice and data-based services, network infrastructure and New Zealand customer base.
Telstra chief executive officer David Thodey says the deal will combine TelstraClear’s fixed telecommunications and data products and corporate client base with Vodafone New Zealand’s substantial wireless offering and retail customer base.
“Telstra will continue to service our trans-Tasman customers on a longer-term basis through a binding agreement with Vodafone New Zealand,” Thodey says.
TelstraClear CEO, Dr Allan Freeth, says the deal will not change the products and services TelstraClear provides to its customers.
“It will be business as usual for all of our customers,” he says.
“The acquisition, if approved, will create a new force in the New Zealand market in readiness for the ultra-fast broadband roll out and will provide customers with a full suite of fixed and wireless telecommunications and data products,” he says.
Freeth says the sale is contingent on the approval of the New Zealand Commerce Commission, the Ministry of Economic Development, and the Overseas Investment Office. This is expected to take some months.
Vodafone New Zealand chief executive Russell Stanners says the transaction is expected to allow significant cost and capex savings from a combination of the two companies’ networks, commercial operations and administrative functions.
“If approved, it will create a new force in the New Zealand market in readiness for the ultra-fast broadband roll out, providing customers with a full suite of fixed and mobile telecommunications products,” he says. “The two businesses are very complementary and, when combined, will enhance our ability to meet the communications needs of customers from the Far North to Southland.
He says the acquisition gives Vodafone a compelling set of products and capabilities for consumers and businesses, which will allow the company to innovate and grow, particularly as fibre rolls out across New Zealand.
“We are committed to building on our regional presence – particularly in Christchurch – as part of our overall commitment to the region’s rebuild.”
Vodafone, which entered the New Zealand market 14 years ago, has more than 2.4 million customers.
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