1491958047222 - TeamTalk shareholders agree to $10m Vodafone deal

TeamTalk shareholders agree to $10m Vodafone deal

TeamTalk shareholders have approved the partial sale of the NZX-listed telco to Vodafone, thwarting a rival takeover bid for the whole company from Spark.

TeamTalk chairman Roger Sowry said shareholders had approved the sale of a 70 per cent share of TeamTalk’s Farmside rural broadband business to Vodafone for $10 million.

Spark had applied to the Commerce Commission for clearance to buy the entire TeamTalk business for $22m, before Vodafone stepped in with its alternative offer.

Spark spokesman Richard Llewellyn initially said Spark had no comment on whether it might now pursue a takeover of the remainder of TeamTalk, whose main other assets include a fibre and wi-fi network in Wellington run by subsidiary CityLink, and a mobile radio business.

READ MORE: * Vodafone and Spark in takeover tussle over TeamTalk * Spark offers “compelling” 80c a share for on-the-wane TeamTalk * TeamTalk fights Spark takeover bid * Too soon to say what takeover would mean for free Wellington wi-fi, says Spark

There had been speculation Spark’s main interest in acquiring TeamTalk was CityLink.

Llewellyn later clarified that Spark had no “current intentions” with regard to TeamTalk, but added “many things can change”.

“But right now there are no current intentions,” he said. 

A statement by Spark last week indicated that it would instead pursue “alternative options to CityLink to achieve our Wellington metro fibre objectives” in the event Vodafone’s offer was accepted.

Vodafone NZ chief executive Russell Stanners said its partnership with TeamTalk was a sign of the strength and depth of Vodafone’s commitment to rural New Zealand.

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