|Telecom Corp. of New Zealand (TEL.NZ) has entered a binding agreement to sell Australian telecommunications company AAPT to TPG Telecom for A$450 million, it announced today. |
AAPT provides Internet, data, voice and cloud services to businesses and wholesale customers.
The sale is consistent "with our desire to focus principally on our New Zealand operations and on the needs of New Zealand customers," said Telecom Chief Executive Simon Moutter.
"AAPT is performing well. David Yuile and his management team have done an impressive job during the last three years to simplify, stabilise and reshape the company."
AAPT CEO Yuile says it is now well positioned in the Australian market as a business and wholesales telecommunications company after several years of "tough decisions".
Telecom said it expects to use the sale proceeds to repay debt and will provide further guidance at its first-half profit announcement on Feb. 21.
The sale is expected to be completed on February 28.
AAPT main assets are its fibre optic networks that will complement TPG's existing network, as well as the data centre and mid band Ethernet capability.