London: Telecom major Vodafone today said it will acquire New Zealannd based TelstraClear which provides fixed telecom services in the country for NZ Dollar 840 million (over $662 million).
“Vodafone New Zealand has entered into an agreement to acquire TelstraClear Limited, the New Zealand business of Telstra Corporation, for a cash consideration of NZ Dollar 840 million,” the company said in a statement.
Vodafone New Zealand is the largest mobile operator in the country with more than 2.4 million customers, and TelstraClear is the second largest fixed operator, it added.
“The proposed transaction offers significant benefits for New Zealand businesses, consumers and the country as a whole. TelstraClear’s infrastructure and capabilities are highly complementary to those of Vodafone New Zealand,” Vodafone Group Chief Executive Vittorio Colao said.
The acquisition of TelstraClear will strengthen Vodafone New Zealand’s portfolio of fixed communications and create a leading total communications company, he said.
TelstraClear owns New Zealand’s second largest fixed infrastructure, which includes a 6,600 km fibre backbone connecting 19 of the country’s largest cities. TelstraClear also includes an extensive local access network with 2,000 km of fibre and 4,500 km of copper as well as a cable TV and broadband access network passing 150,000 homes in Wellington and Christchurch.
The transaction is expected to be completed during the fourth quarter this year, after getting approvals from the New Zealand Commerce Commission, the Ministry of Business, Innovation and Employment and the Overseas Investment Office, Vodafone said.