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%.
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Comments and questions2
Telecom claims to have introduced a world class antispamming system in regard to Xtra.
This was introduced at the start of 2010 and has caused extreme frustration to those attempting to send emails to those who use Xtra as their internet services provider.
And it is still happening,Last week I replied to email messages sent by an Xtra user,but he did not receive them.
I send an email to another Xtra user,who only has a mobile number which I do not know,thus I will have to write to him instead.
Earlier in the year this was especially bad and I struck five clients in one day who had not received my emails.
if it is a social chat it does not matter,but these were all imporatnt business related emails.
I spoke to their helpdesk twice,which appeared to be somewhere in India,but never heard back[neither did the client who they proposed to use as a test case for the problems]
Telecom has been going backwards for many years.
I am glad that I did not buy its shares as an investment.
They may as well sell everything off and liquidate.
What a petty thing to say
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