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Telecom - Source: ONE News -
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Telecom will receive $A140 million ($NZ175 million) from the
sale of assets in Australia, though the company has failed to sell
all of its AAPT business.
Telecom said today that it is selling the consumer division of AAPT
to internet service provider iiNet for $A60 million and it is
selling an 18.2% stake in iiNet for $A70 million. Yesterday it said
it was selling its 10.1% stake in Macquarie Telecom for
$A9.9m.
The deals were leaked to Australian media. Telecom shares resumed
trading after the announcement today.
Investors have been hoping that the company would sell all of its
AAPT business in a $A300 million plus deal.
"It has been a disaster of investment for Telecom and a lot of
shareholder wealth has been destroyed," Grant Williamson, director
of Hamilton, Hindin, Greene, said yesterday.
Telecom said AAPT would now focus all of its efforts on leveraging
its network infrastructure to deliver superior voice, data and
internet solutions to the wholesale and business market.
The sale of its consumer division would have a negative impact on
AAPT's 2011 earnings before interest, tax, depreciation and
amortisation of around $A10m.
Telecom chief executive Paul Reynolds said the transactions
rationalised the company's non-core assets and repositioned AAPT's
business to a network-centric wholesale and corporate business that
was well positioned for future growth.
Australian media is speculating Telecom could sell the remaining
AAPT business into the country's national broadband network at a
later date.
AAPT is estimated to have cost Telecom NZ shareholders more than $2
billion.
Telecom shares rose a cent to $2 when they resumed trading.
