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Friday, 12 October 2007 |
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TCNZ buys stake in Hutchison’s Australian arm: great news for Aussies and Kiwis wanting to compare notes on their ignominious exits from the Rugby World Cup?
Major telcos in Australia and New Zealand have long eyed each other’s markets with a mix of covetousness and condescension. The prospect of making money out of their rival’s market is irresistible to them.
The latest such move came this week with the news that Telecom New Zealand is buying a stake in Hutchison Telecom Australia Ltd (HTAL) for US$300mn. HTAL currently owns 80.1% of Hutchison 3G Australia, in which TCNZ at present holds a direct stake of 19.9%. It’s that stake that will form the basis for the purchase of HTAL shares, leaving TCNZ with a 10% stake in the parent. The profit on the transaction will go to HTAL’s parent, Hutchison Whampoa, and will be worth an estimated US$116mn.
The terms of the deal allow TCNZ to raise its stake in HTAL by a further 9.9% before the year’s end at a price of US$250mn.
Jim Chalmers
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