REG - Telstra Corp. Ld - Telstra completes Digicel Pacific acquisition

TelstraAnnouncement

14/07/2022 07:00

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RNS Number : 4203S  Telstra Corporation Ld  14 July 2022

 

 

 

 14 July 2022

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ELECTRONIC LODGEMENT

 

Dear Sir or Madam

 

Telstra completes Digicel Pacific acquisition in partnership with the
Australian Government

 

In accordance with the Listing Rules, I attach a market release, authorised
for lodgement by the CEO, for release to the market.

 

 

 

Yours faithfully,

 

 

 

 

Sue Laver

Company Secretary

 

 

 

 

Media Release

 

Telstra completes Digicel Pacific acquisition in partnership with the
Australian Government

 

14 July 2022 - Telstra today 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 US$270 million of equity to the US$1.6 billion purchase
price and the Australian Government, through Export Finance Australia,
provided the remaining US$1.33 billion through a combination of non-recourse
debt facilities and equity like securities. Telstra owns 100 per cent 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 Mr 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 US$466 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 US$160
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
made arrangements 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.

 

 

ENDS

Telstra Media contact:

 

Media Contact: Steve Carey

M: +61 (0) 413 988 640

E: media@team.telstra.com (mailto:media@team.telstra.com)

 

Investor contact: Nathan Burley

M: +61 (0) 457 529 334

E: investor.relations@team.telstra.com
(mailto:investor.relations@team.telstra.com)

 

Media reference number: 052/2022

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