Telecom NZ "auctioning off AAPT"

Stuart Corner
Monday, 19 April 2010 15:47

IT Industry - Market

Reuters has reported that Telecom NZ is well advanced in a plan to sell of AAPT, saying bidding has closed with offers received from four players.

Quoting a "source, speaking on condition of anonymity," Reuters said: TPG Telecom, Pacnet, Optus and private equity firm Quadrangle Group had put in bids by a 15 April deadline.

Quadrangle is a global private investment firm with more than $US3b in assets under management and offices in New York and Hong Kong. It focuses on direct investments in the communications, media, and business and information services industries around the world.

Its Hong Kong office is run by Ed Sippel, who is no stranger to investments in Australian telecommunications. Until 2007 he was managing director and partner at TVG Capital Partners. TVG has at various times been an investor in Neighbourhood Cable, of which it bought 100 percent in 2005 - and later sold to TransACT - and Powertel (now part of AAPT)

Telecom NZ downgrades guidance
Meanwhile, Telecom NZ has reduced its EBITDA guidance for the next three financial years in anticipation of lower mobile revenue growth, price pressures on voice and data and the impacts of the GFC.

CONTINUED