Telecom New Zealand has reached an agreement to acquire 100 percent stakes in Australia’s PowerTel Ltd for A$357 million (US$276 million), orA$2.30 per share in cash, to strengthen its presence in Australia. PowerTel’s board has approved it.
The acquisition will also give Telecom a 20 percent stake in Australian ISP iiNet and a substantial stake in Macquarie Telecom. Telecom has also entered into an option agreement to acquire 10 percent of PowerTel’s shares on issue from TVG (PowerTel’s major shareholder), also at $A2.30 per share.
Telecom expected the transaction should be within the next 18 months. The acquisition will be funded by cash and Telecom’s existing debt facilities.
The transaction will have certain conditions as it will need shareholder and regulatory approval. Documents will be sent to PowerTel shareholders by March and PowerTel shareholders will have the opportunity to vote on the scheme in April.
Via:newswire
