Vodafone Buys New Zealand GSM Network
Tuesday August 25, 11:23 am Eastern Time
Company Press Release
Vodafone Buys New Zealand GSM Network
NEW YORK--(BUSINESS WIRE)--Aug. 25, 1998--Vodafone Group Plc announces today that Vodafone Europe Holdings BV has reached agreement for the purchase of the national New Zealand GSM cellular network and related assets operated by BellSouth New Zealand (a partnership of BellSouth and Singapore Technologies) and the whole of the issued share capital of BellSouth New Zealand Limited, the owner of the relevant Radiocommunications Act rights and licenses, from BSNZ Wireless Holdings Inc. and ST Telecommunications Pte Limited.
The aggregate consideration for the transaction is approximately NZ$750 million, payable in cash on completion, which is expected to be in about eight weeks' time after the satisfaction of a number of conditions.
At July 31, 1998 BellSouth New Zealand had over 120,000 customers, a figure representing approximately 19 percent of the total cellular telephone market in New Zealand. The current penetration level in New Zealand is approximately 17 percent.
The net assets of the partnership and BellSouth New Zealand Limited at Dec. 31, 1997, which are being acquired debt free, amounted to NZ$240 million and the loss of the business before interest and tax for the year to Dec. 31, 1997 was NZ$6 million.
Chris Gent, chief executive of Vodafone Group Plc, commented: ''Vodafone is delighted that its offer to purchase the only GSM network in New Zealand has been accepted. This acquisition will complement the Group's activities in Australia and Fiji and we are looking forward to developing the business and to being able to demonstrate the full benefits of GSM technology to the New Zealand market. Mobile telephony is Vodafone's core business and the New Zealand network is a very welcome addition to the group's growing international portfolio.''
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Contact:
Vodafone Group Plc
Ken Hydon, (01635) 33251 |
