Telecom New Zealand Sells Australian Subsidiary
Published on: 9th Dec 2013
By: Ian Mansfield
Telecom New Zealand has announced that it is selling its Australian subsidiary AAPT for AU$450 million to TPG Telecom.
AAPT owns a fibre optic cable network that links various cities and commercial hubs throughout Australia.
Telecom has been looking for a buyer since it announced plans to sell the company back in May.
The company said that the proceeds from the sale would be used to reduce its debt.
It is also reportedly looking to sell its indirect 5% stake in Vodafone Australia, which it holds through a 10% stake in Hutchison Telecommunications Australia. Telecom NZ bought its 10% stake in HTA for AU$400 million in 2001 as part of an expected technology sharing agreement that never materialised.