Telstra (ASX: TLS.AX) confirmed that it has begun discussions with Vodafone New Zealand (LSE: VOD.L) to explore a possible deal to sell its New Zealand subsidiary, TelstraClear.
The service provider admitted the talks were taking place, Computerworld reported, after a rumor of a deal appeared on Twitter.
Damien Coleman, Telstra's company secretary, said in an announcement to the Australian Stock Exchange that the service provider T "was approached by, and is in discussions with Vodafone New Zealand, to explore the potential sale of Telstra Corporation's New Zealand subsidiary, TelstraClear to Vodafone New Zealand."
Coleman added that "Discussions are continuing and there is no certainty as to whether an agreement will be reached."
In addition to wireless spectrum, if Vodafone did buy TelstraClear, they'd acquire a wide series of wireline assets including: an HFC network serving Christchurch and Wellington; an estimated 200,000 broadband customer base; a national backhaul network; 50,000 MVNO customers; a strong business-customer base; and 1,300 full-time employees.
What prompted the report of a possible sale was a Tweet made by Seeby Woodhouse, the founder of Orcon. It read: "Hearing rumours @Vodafonenz has bought @TelstraClearNZ to get TCs stock of 4G specturm & consolidate the market. Big telco shake up if true."
TelstraClear is just one of two big deals that Vodafone is in the process of working through. The service provider is also working on a deal to acquire Cable & Wireless Worldwide (CWW).
For more:
- Computerworld New Zealand has this article
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