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Telecom to Consider Australian Options

TELECOM LAUNCHES FORMAL PROCESS TO CONSIDER AUSTRALIAN OPTIONS

Telecom today said it would conduct a formal process to evaluate its future options around its Australian operations.

Telecom said in October that it had been approached by several parties regarding a possible sale of its Australian business, or the possibility of forming a business alliance. Since that time, further interest has been shown in Telecom’s Australian operations. In response to the unsolicited approaches from external parties, Telecom has initiated a review to consider whether there are strategies available that would further enhance shareholder value.

Telecom’s Chief Financial Officer Marko Bogoievski said a number of credible parties were interested in working alongside Telecom in the Australian market.

“There are a number of players out there who have expressed interest in exploring future options with us in Australia. As yet no formal proposals have been tabled, but the level of interest has been such that the best way forward is through a formal process of engagement,” Mr Bogoievski said.

“We believe that industry consolidation makes sense, and we are open to the role that Telecom might play in that. As such, we are prepared to consider a range of options including a merger, acquisition, divestment or retention of our Australian operations. Australia continues to be an important market for Telecom and its customers. Any action taken as a result of this process will be centred on shareholder value creation and enhancing the service provision to our existing customer base,” Mr Bogoievski said.

Telecom expects that the process will commence in late January and take some weeks to complete. An update to the market will be provided if substantive proposals emerge from the process.

ENDS

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