Vodafone to proceed with 70% stake acquisition

Wednesday, 12 April 2017, 12:22 pm
Press Release: Vodafone

Wednesday 12 April, 2017

Vodafone New Zealand delighted to move forward with acquiring 70 per cent stake in TeamTalk’s Farmside

Vodafone New Zealand Limited (Vodafone NZ) and TeamTalk Limited (TeamTalk) (NZX: TTK) have today cleared a major hurdle, for Vodafone NZ’s proposal to acquire 70 per cent of the shares in BayCity Communications Limited for $10 million in cash.

BayCity Communications Limited and its wholly owned subsidiaries (trading as Farmside) own and operate TeamTalk’s rural broadband and satellite business.

This morning TeamTalk shareholders considered and overwhelmingly endorsed a resolution that enables the transaction to proceed.

The transaction builds on the longstanding relationship between the two companies and offers the opportunity for synergies beyond Farmside. TeamTalk will continue to manage Farmside under a management contract.

Russell Stanners, Vodafone NZ Chief Executive said, the partnership is a sign of the strength and depth of Vodafone’s commitment to rural New Zealand.

“I am delighted with the vote of confidence from TeamTalk’s shareholders. This is an opportunity to deliver better outcomes for rural customers, to increase our presence in the rural broadband market and to utilise the skillsets of the two complementary companies.

“The investment by Vodafone in Farmside further deepens the strategic relationship between ourselves and TeamTalk. There are other opportunities for us to partner, for instance sharing fibre including future upgrade and maintenance costs,” Russell added.

ENDS

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