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Telstra has finalised its $US1.6 billion purchase of Digicel Pacific following regulatory approvals from the Australian Government.
“Telstra’s acquisition of Digicel Pacific is a positive development for our neighbours in the Pacific, who will experience a number of social and economic benefits through improved telecommunications infrastructure,” Minister for Communications Michelle Rowland said.
Digicel Pacific is the leading mobile telecommunications and network services provider in the Pacific and plays a vital role in the economic development of the Pacific region.
“Telstra will be able to bring its extensive experience in the telecommunications sector to build on Digicel Pacific’s strong track record in support of economic development across the region,” Minister for International Development and the Pacific Pat Conroy said.
“Now more than ever, the region needs access to high quality telecommunication services as it recovers from the economic impact of COVID-19.”
As a trusted and experienced industry leader, Telstra brings strong capabilities to ensure secure, reliable and high-quality services are provided to Pacific communities, including in Papua New Guinea, Vanuatu, Fiji, Samoa, Tonga and Nauru.
“Accessing reliable telecommunication networks is essential for families, businesses, communities and governments to connect and share information, which is why the Australian Government is pleased to support this acquisition,” Minister Rowland said.
Read here: Telstra and the Australian Government to buy Digicel Pacific (commsroom.co)
The federal government is providing USD1.33 billion in a financing package, through Export Finance Australia (EFA), to support Telstra’s commercial acquisition.
Telstra will own and operate Digicel Pacific, which will be overseen by a Telstra-controlled board chaired by Telstra Enterprise group executive David Burns.
“The Australian Government’s support for this transaction reflects our commitment to help build a stronger Pacific family through investment in high-quality infrastructure,” Minister for Foreign Affairs Penny Wong said.
“Telecommunications and digital access are critical to sustainable economic growth and development outcomes into the future.”
Minister for Trade and Tourism Don Farrell said the finalisation of the purchase would send a “positive signal of business confidence in the Pacific region”.
“We hope it will encourage further investment in the region from top tier Australian companies,” he said.
Telstra contributed $US270 million of equity to the $US1.6 billion purchase price.
The company had about 2.8 million subscribers and 1700 employees generating $US466 million in service revenue for the financial year ending March 31.
The acquisition comes as leaders meet in Fiji for the Pacific Islands Forum.
This article was first published on Public Spectrum.
Eliza Sayon is an experienced writer who specialises in corporate and government communications. She is the content producer for Public Spectrum, an online knowledge-based platform for and about the Australian public sector.
