Telstra has announced that it has sold its wholly owned New Zealand subsidiary TelstraClear to Vodafone New Zealand for NZ$840 million (or AU$660 million); and hence, pulling out of the New Zealand market.
The deal sees Vodafone New Zealand, founded in 1998 and is the largest mobile phone operator in the country, acquiring its customer-base, network infrastructure and voice/data services. It also means that Vodafone New Zealand would be entering into the pay TV and fixed-line markets.
Telstra CEO David Thodey said that it was a good deal for shareholders, noting, “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.”
It needs to be approved by New Zealand’s Commerce Commission, the Overseas Investment Office and the Ministry of Business, Innovation and Employment – which Telstra says it expects to be completed in a couple of months.