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Telecom New Zealand has made a $AU357 million takeover bid for the Sydney-based junior telco PowerTel Ltd.
Telecom is offering PowerTel shareholders $AU2.30 a share in cash via a scheme of arrangement under the offer.
The company said the offer price represented a 31.2% premium on the volume weighted average price of PowerTel's shares in the last three months, and an 18.7% premium on the telco's average volume weighted share price over the last 30 days.
Telecom chief financial officer Marko Bogoievski said the acquisition, which has been unanimously backed by the board of PowerTel, would combine two strongly complementary businesses.
"This acquisition brings two strongly complementary businesses together and is a step towards consolidation of the Australian telecommunications industry," Bogoievski said.
"It provides significant benefits to Telecom by enabling AAPT to leverage its investment in service capability, and it gives us the scope over time to bring more of our customers onto the combined access network rather than servicing them through wholesale arrangements."
