Telstra in talks to buy Digicel Pacific with Australian government support By Reuters

Telstra in talks to buy Digicel Pacific with Australian government support By Reuters

© Reuters. FILE PHOTO: A man looks at his phone as he walks past a Telstra logo adorning a phone booth in the central business district (CBD) of Sydney in Australia, February 13, 2018. REUTERS/David Gray/File Photo

(Reuters) -Telstra Corp Ltd said on Monday it was in discussions to buy the Pacific operations of telecom company Digicel Group, with the support of the Australian government, which will likely fund the majority of the deal amount.

The announcement follows a report over the weekend by the Sydney Morning Herald that said the deal could be worth A$2 billion ($1.48 billion), with the Australian government paying around A$1.5 billion.

Telstra (OTC:) said it was approached by the government to provide technical advice initially on Digicel Pacific, which is “critical to telecommunications in the region.”

The company added that if the deal were to go through, it would be with “significant” government funding and support, while Telstra’s contribution will form a “minor portion”.

“The discussions are incomplete and there is no certainty that a transaction will proceed,” Telstra added.

Digicel Pacific is a leading telecom provider in Papua New Guinea, Fiji, Nauru, Samoa, Tonga and Vanuatu, Telstra said.

Its regional operations generated core earnings of $235 million in 2020 with strong margins, the company said.

($1 = 1.3510 Australian dollars)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a comment

Send a Comment

Your email address will not be published.

Enter text shown below: