Telecom NZ to Sell Australian Subsidiary for A$450 Million

Telecom NZ agreed to sell its Australian subsidiary, AAPT, to TPG Telecom for A$450 million. The deal represents approximately 6.4x AAPT’s current recurring annualised EBITDA run-rate of approximately A$70m.

AAPT operates a national network serving enterprise, government, wholesale and broadcast companies across Australia.

Telecom NZ agreed to sell its Australian subsidiary, AAPT, to TPG Telecom for A$450 million. The deal represents approximately 6.4x AAPT’s current recurring annualised EBITDA run-rate of approximately A$70m.

TPG is an Australian ISP/Telco that owns end-to-end network infrastructure which includes over 400 DSLAM enabled telephone exchanges across Australia, extensive metropolitan fibre optic networks, and the international PPC-1 submarine cable connecting Australia and Guam with onwards connectivity to USA and Japan.

Telecom NZ said the sale lets it focus on operations in its home market.  Sale proceeds will be used to repay debts.

http://www.tpg.com.au/

http://www.telecom-media.co.nz