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Telecommunications Telecom NZ to buy PowerTel for $A357m
Telecommunications Telecom NZ to buy PowerTel for $A357m | Telecom NZ to buy PowerTel for $A357m |
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| by Stuart Corner | |
| Wednesday, 31 January 2007 | |
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The transaction values PowerTel at approximately A$357 million including net debt and has been unanimously endorsed by the PowerTel directors. The acquisition will also give Telecom a 20 percent stake in Australian ISP iiNet (ASX: IIN) and a substantial stake in Macquarie Telecom (ASX: MAQ) Telecom has also entered into an option agreement to acquire 10 percent of PowerTel's shares on issue from TVG (PowerTel's major shareholder), also at $A2.30 per share. The move comes less than 24 hours after PowerTel postponed its AGM, which had already started, saying it had received "incomplete, non-binding and conditional confidential proposals from independent parties" and that there was "no certainty that a transaction involving PowerTel will be executed or implemented." Telecom NZ foreshadowed the deal last November when it announced a wholesale agreement between PowerTel and its Australian subsidiary, AAPT. However the value of PowerTel has increased substantially since then. |
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