Vodafone New Zealand completes transaction to acquire 70% stake in Farmside
Vodafone New Zealand Limited (Vodafone NZ) and TeamTalk Limited (TeamTalk) (NZX: TTK) today announced that they have completed a transaction enabling Vodafone NZ 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. The transaction was overwhelmingly endorsed by TeamTalk shareholders at a Special Meeting held in Wellington on April 12, and builds on the longstanding relationship between the two companies.
Andrew Miller, TeamTalk Chief Executive said TeamTalk will continue to manage Farmside under a management contract.
“For Farmside’s rural broadband customers, it will be business as usual with the same exceptional service provided by the staff at Farmside’s Timaru-based office.
“Today’s settlement strengthens our relationship with Vodafone, a significant provider to rural New Zealand, and will enable Farmside to deliver enhanced services to rural communities.
“The successful conclusion to this acquisition 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,” Andrew said.
Russell Stanners, Vodafone New Zealand Chief Executive said the partnership is a sign of the strength and depth of Vodafone’s commitment to rural New Zealand.
“This is a fantastic 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 working together to bring customers coverage where it matters most.
“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.
Vodafone is committed to delivering more customer benefits.