TelstraClear sale imminent: report

 

Regulatory scrutiny likely.

Telstra is set to sell its New Zealand subsidiary TelstraClear to Vodafone NZ, according to reports.

Business Day reported overnight that a deal could be struck within weeks, with the sale to be announced sometime next month.

The price is thought to be in the $340-$400 million range, according to analysts.

The New Zealand subsidiary has performed badly for Telstra, suffering retained losses of $422.43 million on a total investment of $1.14 billion.

The company is the second-largest internet provider and telco in the country, and retains 1300 staff and 700 contractors. Many are likely to be affected by the deal.

Vodafone is thought to be eyeing TelstraClear’s national fibre backbone networks as well as its radio frequency spectrum holdings, which could be used to more easily deploy an LTE wireless network.

Despite reports of Telstra only selling the consumer business, the telco is expected to sell the company as a whole.

A stumbling block to the deal could be New Zealand commerce regulations that state a merger creating an entity with less than 20 percent market share is unlikely to lessen competition, in a market where the biggest three players have more than 70 percent share.

The merged Vodafone and TelstraClear entity would create a company that has almost a third of the market, behind Telecom New Zealand, which owns 50 percent. The deal is therefore likely to be scrutinised by the regulator, the Commerce Commission.

Copyright © iTnews.com.au . All rights reserved.


TelstraClear sale imminent: report
 
Readers of this article also read...
 
 
Top Stories
Woolworths hires first-ever CISO
KPMG exec to head IT security ranks.
 
Content, cost & constant innovation: How Foxtel plans to take on Netflix
Nell Payne inhabits the “brave new world of blue strings and networking”. Just don't ask her to put a TV screen on your microwave.
 
Westpac fires starting pistol on core banking upgrade
St George readies itself for move to Celeriti.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest articles on BIT Latest Articles from BIT
Microsoft launches Office for Android preview
May 22, 2015
Microsoft has launched a preview of Office for Android smartphones. Pre-release versions of ...
Microsoft is working on an iOS email chat feature called Flow
May 22, 2015
Microsoft is working on a new chat app, but at the moment we know more about what we DON'T know, ...
Windows 10 free upgrade: Microsoft details who gets what
May 22, 2015
Microsoft was meant to be streamlining its OS with Windows 10, so why is upgrading so confusing? ...
Windows 10 has an edition to suit everyone's needs
May 15, 2015
Microsoft unveils a mind-melting six editions of Windows 10 ahead of its Winter 2015 launch. ...
Firefox 38 FINAL released, debuts new tab-based preferences
May 13, 2015
Mozilla has unveiled the latest version of Firefox 38.0 FINAL for desktop, with Firefox for ...
Latest Comments
Polls
Should Optus make a bid for iiNet?

   |   View results
Yes
  43%
 
No
  57%
TOTAL VOTES: 561

Vote