WELLINGTON, New Zealand-Telecom Corporation of New Zealand said it intends to make a takeover offer for the approximately 20 percent of shares in Australian operator AAPT that it does not already own for $258 million. The company said it will offer minority shareholders $4.23 in cash for each AAPT share.
Global Wireless, RCR’s sister publication, in July reported that Telecom New Zealand had not ruled out acquiring the remaining 18 percent of AAPT. Theresa Gattung, the company’s chief executive, said then that Telecom New Zealand was keen to reposition itself for growth by focusing more on Australia because its Trans-Tasman neighbor offered a bigger market than New Zealand.
The offered price represents a 23.5-percent premium to the volume weighted average trading price of the shares over the three months up to Aug. 14.
“Acquiring the balance of AAPT shares will enable us to take real advantage of synergies that are increasingly evident, especially in the high-growth areas of data and mobile communications and Internet services,” said Gattung. “We will also have greater flexibility to develop our businesses on a regional basis and to make the best strategic plays open to us going forward.”
Telecom New Zealand acquired an initial 9.9-percent shareholding in AAPT in May 1999 and increased its ownership to 82 percent during the second half of 1999.
