New Zealand's Telecom Corp. sells its Australian arm to TPG Telecom
December 10, 2013, 12:25 am TWN
WELLINGTON--New Zealand's dominant telecommunications company Telecom Corp. announced a deal on Monday to sell its Australian arm AAPT to Sydney-based TPG Telecom for AU$450 million (US$411 million).
Telecom said the sale was part of a restructuring that involves the company, which in August posted a fall in annual net profit of almost 80 percent, focusing on its home market
Under the changes, Telecom is attempting to become more than a mobile and fixed-line infrastructure provider, branching out into areas such as entertainment and cloud computing to meet evolving demand.
Telecom paid about NZ$2.2 billion (US$1.8 billion at current exchange rates) for AAPT when it bought the company under a deal announced in 1999 at the height of the dotcom boom.