Telecom NZ to buy PowerTel for $357M

Telco industry consolidation continues in 2007

Telecom New Zealand announced today it had reached an agreement to acquire 100 percent of ASX-listed voice and data carrier PowerTel.

Telecom New Zealand chief executive Theresa Gattung announced the plan to acquire the PowerTel shares which has been unanimously endorsed by the PowerTel directors, according to the company.

The proposal involves Telecom New Zealand paying $AU2.30 per share in cash by way of a scheme of arrangement.

Telecom New Zealand's chief financial officer Marko Bogoievski said the acquisition brings two "strongly complementary" businesses together and is a step towards the consolidation of the Australian telecommunications industry.

"It provides significant benefits to Telecom [New Zealand] by enabling AAPT to leverage its investment in service capability and it gives us the scope over time to bring more of our customers onto the combined access network rather than servicing them through wholesale arrangements," Bogoievski said. "This is a very positive step for the development of our Australian business."

The transaction values PowerTel at approximately $AU357 million including net debt and the acquisition will be funded by a combination of cash and Telecom's existing debt facilities.

Telecom has also entered into an option agreement to acquire 10 percent of PowerTel's shares on issue from its major shareholder TVG.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Rodney Gedda

Show Comments


James Cook University - Master of Data Science Online Course

Learn more >




Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?