AUS
NZ
UK
CA
USA
IND
Highlights:
- The concerned acquisition was announced by Telstra in October 2021 in collaboration with the Australian government.
- Telstra has bought this leading telecom company, Digicel Pacific, which operates in PNG, Fiji, Nauru, Samoa, Tonga and Vanuatu.
- Telstra shares began trading in green today after this update was posted.
Renowned Australian internet service provider Telstra Corporation Limited (ASX:TLS) announced today that it has successfully executed the acquisition of Digicel Pacific. The acquisition was executed after securing all the relevant government and regulatory approvals.
Post this announcement, Telstra shares began trading a tad higher on the ASX, 0.512% up at AU$3.920 per share at 10:54 AM AEST.
Details of Telstra’s acquisition of Digicel Pacific:
Telecom giant Telstra announced the completion of Digicel Pacific acquisition, which was initially announced in October 2021 in partnership with the Aussie government.
The complete transaction cost of this acquisition stands at US$1.6 billion. Out of the total purchasing amount, Telstra has contributed US$270 million of equity. The outstanding amount of US$1.33 billion was paid in a combined arrangement of non-recourse debt facilities and equity.
Andrew Penn, CEO, Telstra, said that Digicel Pacific would be operated by Telstra International, led by Oliver Camplin-Warner, as an independent business.
As per the ASX announcement, Digicel will be looked after by a board controlled by Telstra and will be chaired by David Burns, Telstra Enterprise Group Executive.
Digicel Pacific is one of the leaders in the communications services industry. It has its functions across PNG, Fiji, Nauru, Samoa, Tonga and Vanuatu. The company had around 2.8 million subscribers and 1700 employees, generating US$466 million in service revenue for the financial year ended on 31 March 2022.
Highlights of Telstra’s share price performance on the ASX:
Leading telecom service provider, Telstra, managed to sail its ship through challenging market conditions during last year. Telstra’s share price went up approximately by 4% on the ASX in the last year. However, when it comes to Telstra’s Y-T-D performance, the communication stock fell by almost 7% (as of 12:00 PM AEST on the ASX today, 14 July).
