The decision to sell the operation to its rival for NZ$840 (A$660m), just announced, means Vodafone NZ will acquire TelstraClear’s voice and data services, network infrastructure and local customer-base.
Telstra’s Chief, David Thodey, described the deal as a “natural one” with strong strategic rationale and good for shareholders.
“The deal is a natural one, bringing together TelstraClear’s fixed telecommunications and data products and corporate client-base with Vodafone New Zealand’s mobile offering and retail customer-base,” he said.
“The transaction is consistent with Telstra’s overall strategy and capital management framework that we outlined in April.”
Telstra also confirmed it has an agreement with Vodafone NZ to ensure service continuity for its trans-Tasman customers.
However, the sale is contingent on approval from New Zealand regulatory authorities, including the Commerce Commission, Overseas Investment Office and Ministry of Business, which is expected to take a number of months.
Telstra has confirmed it will return NZ$490 million (A$380m) in cash to Australia via a pre-completion dividend, already consolidated in Telstra’s Group results.
|The proceeds from the sale, if approved, will be incremental to the telco’s expected three-year excess e cashflow of $2-3 billion (subject to the NBN roll out schedule and market conditions).
The telco also revealed it will record an accounting impairment of A$130 m approx in FY2012, and again in FY2013 due to “unrealised foreign currency losses.”