Digicel Pacific will be overseen by a Telstra controlled board
Telstra announced it had completed the acquisition of Digicel Pacific, following receipt of all necessary government and regulatory approvals.
The acquisition of Digicel Pacific was announced in October 2021 in partnership with the Australian Government.
Telstra contributed $US270 million of equity to the $US1.6 billion purchase price and the Australian Government, through Export Finance Australia, provided the remaining $US1.33 billion through a combination of non-recourse debt facilities and equity like securities. Telstra owns 100 percent of the ordinary equity.
Telstra CEO, Andrew Penn said Digicel Pacific would be operated by Telstra International, headed by Oliver Camplin-Warner, as a stand-alone business, with the same team that Digicel Pacific’s customers know and love today.
“We are very pleased the deal has completed and we welcome Digicel Pacific to the Telstra family,” said Penn.
“We have been working closely with Pacific Governments on this acquisition and we’d like to thank them for their cooperation and support. We look forward to continuing to work with them as we operate Digicel Pacific and strengthen our relationships in the region.”
Digicel Pacific will be overseen by a Telstra controlled board chaired by Telstra Enterprise Group Executive David Burns.
Digicel Pacific is the leading provider of communications services across PNG, Fiji, Nauru, Samoa, Tonga and Vanuatu. The company had around 2.8 million subscribers and 1700 employees generating $US466 million in service revenue for the financial year ended 31 March 2022.
Telstra expects Digicel Pacific depreciation and amortisation, including purchase price amortisation arising from the transaction, of around $US160 million per annum. Post completion, Telstra will account for this acquisition in the income statement as a 100 percent wholly owned entity.
With respect to the Papua New Guinea Additional Company Tax, the vendor has decided to resolve the matter with the PNG tax authorities. Telstra is not part of this process, and the outcomes of this process are a matter for the vendor.