Monday August 9, 11:58 pm Eastern Time
Company Press Release
SOURCE: Leap Wireless International
Leap Wireless International
Announces Sale of Australian
Subsidiary, OzPhone Pty. Ltd. to an Affiliate of AAPT for
$25 Million Australian Dollars
- Sale Allows Leap to Apply Additional Resources to Other Investments -
SAN DIEGO, Aug. 9 /PRNewswire/ -- Wireless communications carrier
Leap Wireless International, Inc. (Nasdaq: LWIN - news) today announced
that it has agreed to sell its wholly owned Australiansubsidiary, OzPhone,
Pty. Ltd. to an affiliate of AAPT Ltd., Australia's third largest
telecommunications company, for $25 million Australian dollars,
approximately $16.3 million United States dollars. OzPhone holds licenses
covering 6 million potential customers which include the regions
of Brisbane, Perth, Cairns, Mackay, Maryborough, Grafton, Tasmania,
and Regional West, Remote West, and Remote Queensland. OzPhone
acquired these licenses in May and October of 1998 for
$10.3 million Australian dollars or $6.2 million United States dollars.
Leap had planned to offer a flat rate, unlimited use service in Australia.
However, certain market and regulatory issues in Australia caused
Leap to conclude that it could achieve greater shareholder return
by this sale of its licenses than it could in years of operation.
''An opportunity for Leap arose that we simply couldn't pass up,'' said
Harvey P. White, chairman and CEO of Leap Wireless. ''Since our
inception we have been committed to buying, developing, and
operating wireless service properties as our primary goal. This sale
is consistent with that goal and will allow us to apply additional
financial and human resources to other projects as we continue our
plans of aggressively expanding our position as a leading wireless
carrier,'' continued White. ''The acquisition of this spectrum by
AAPT compliments their existing spectrum and will make them a
force in the Australian market.''
About Leap Wireless International, Inc.
Leap Wireless International, Inc., headquartered in San Diego, Calif.,
is a wireless communications carrier that deploys, owns, and operates
wireless networks in domestic and international markets with strong
growth potential. In conjunction with its strategic partners, Leap has
launched all-digital wireless service in the United States, Mexico, Chile
and Russia. Leap is dedicated to bringing the benefits of reliable,
cost-effective and high-quality voice and data services to domestic and
emerging markets. For more information, please visit www.leapwireless.com. |
