Vodafone Eyeing Sale of New Zealand Assets
Published on: 8th Mar 2016
Note -- this news article is more than a year old.
Vodafone may be looking to sell its New Zealand subsidiary's landline assets, according to local media reports.
Australia based TPG Telecom is the reported suitor, and in recent weeks, a senior team from the Australian firm has been spotted in New Zealand, apparently holding meetings.
Vodafone's CEO, Vittorio Colao was also in both Australia and New Zealand in recent weeks.
Local reports now suggest that their target could be Vodafone's landline services, in a deal that could cost upwards of NZ$1 billion.
Vodafone boosted its landline services in 2012 with the aquisition of TelstraClear, but has been thought to have struggled to integrate the two companies. Customer growth at the landline division has also been weak.
At the moment, with the landline division still seen as a largely stand-alone operation a sale would be easier should Vodafone decide to walk away from trying to work with the landline operations.
TPG Telecom and Vodafone already have a working relationship in Australia where the two companies have a tie-up covering landline services.