TeamTalk shareholders overwhelmingly support Farmside transaction
TeamTalk Limited (NZX: TTK) shareholders overwhelmingly voted in favour of a resolution to sell 70% of the shares in the company’s Farmside division to Vodafone New Zealand Limited (Vodafone) at a special meeting in Wellington this morning.
Andrew Miller, TeamTalk Chief Executive said, “Shareholders have demonstrated their support for the company and its future. Passing the resolution provides a clear path forward to Farmside, enables TeamTalk to substantially reduce debt and fund our capital programme. The resulting lower financing costs further assist consideration to resume dividends in the calendar year 2018.”
TeamTalk will continue to manage Farmside under a management contract.
“Farmside will continue as a standalone division of TeamTalk and it will be business-as-usual for our customers. Vodafone recognise Farmside as the rural telecommunications experts and they are investing in the company to help strengthen and grow the business.
“The transaction builds on a longstanding strategic partnership between Farmside and Vodafone, and will enable Farmside to deliver enhanced services to rural communities in future.”
Roger Sowry, TeamTalk’s Chairman said, “We acknowledge the vote of confidence shareholders have made in the company. Their ongoing support means the company’s executive team, led by Andrew Miller, are now able to implement our strategy to realise the company’s potential and maximise value for TeamTalk shareholder’s benefit.”
The transaction includes a put option that enables TeamTalk to sell its remaining 30% shareholding in Farmside to Vodafone for $3 million at any time in the next three years, and a call option enabling Vodafone to acquire the remaining 30% for $3 million.
The settlement date for the sale is 31 May 2017.