Telecom Acquires INL Stake
Telecom New Zealand today purchased a 5.7 percent shareholding in the INL Group.
Telecom purchased 21.2 million shares overnight, at $4.25 per share, representing 5.1 percent and remained in the market today. A total of 22.3 million shares, or 5.7 percent was acquired.
“We were wanting to achieve a shareholding in the company of somewhere between 5 and 10 percent and so we are very comfortable with the level we have acquired,” Telecom Chief Executive Theresa Gattung said.
“It is indicative of a small strategic position, which will allow us to build a closer relationship over time.”
The total purchase has cost approximately $94.6 million.
Ms Gattung said the move recognises there are potential synergies between the content and Internet industries.
“It is further evidence of Telecom’s transition from a traditional telecommunications company to a serious on-line and solutions player,” she said.
“It is also a good fit with other strategic initiatives, including the EDS, Microsoft alliance and the investment in AAPT.
“We are operating in a converging, global industry, with several world players in New Zealand. This represents a sound investment for us, with good prospects for the future.