Seeking Alpha

Telecom New Zealand divests AAPT for AU$450M to TPG

  • Telecom New Zealand (NZTCY +1.3%) will sell business telecommunications and cloud services provider AAPT for AU$450M ($409M) to TPG. Closing is expected in Feb., with Australian regulators having cleared the deal.
  • After having sold the consumer division of AAPT in 2010 for AU$60M, the price the telco is getting is a far cry from the AU$2.2B it paid for AAPT at the peak of the dot com bubble in 1999.
  • The ops' revenue has consistently declined, as has operational performance, with AAPT generating EBITDA of $57M this year, down $10M from the previous year.
  • To TPG, the 11K km of fibre the unit owns across six states and territories "will provide ... a much larger backhaul network across Australia, as the company begins to embark on a fibre-to-the-basement rollout for 500,000 CBD businesses and apartments covered by TPG's existing network," ZDNet writes.
Comments (2)
  • TMKrause
    , contributor
    Comments (54) | Send Message
     
    Thank you. Good comments. Why has Chorus dropped like a rock in the past month?
    9 Dec 2013, 12:01 PM Reply Like
  • User 18860541
    , contributor
    Comment (1) | Send Message
     
    Its because of the pricing issue of copper wire and fiber wire here in NZ
    10 Dec 2013, 02:24 PM Reply Like
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