Telecom sells Aussie assets for a so-so $A140m
Telecom has confirmed the sale of AAPT's under-performing retail arm to iiNet for $A60 million, subject to regulatory and iiNet shareholder approval.
Telecom estimates the transaction will have a net negative impact on AAPT’s FY11 ebitda of around $A10 million.
In turn, Telecom announced the sale of its 18.1% stake in iiNet (a retail ISP), held through AAPT's PowerTel division, "to institutional and sophisticated investors" for $A70 million.
Telecom's iiNet stake had a book value of $A81 million as of June 30, 2010.
According to a report in The Australian, the deal includes a provision that iiNet must use AAPT's network for backhaul for "years to come".
The two deals come on top of $A9.9 million realised yesterday from the sale of Telecom's 10% stake in Macquarie Telecom (also held through PowerTel).
Telecom now expected to sell the remainder of AAPT - the company's wholesale fibre operation - to a party affiliated with Australia's National Broadband Network at a later date.
The company's other major Australian asset is its 5% stake in Vodafone Hutchison Australia - trading as Vodafone Australia.
Telecom shares (NZX: TEL) closed flat at $1.99 against a broader market rise of 0.05%.