Telstra May Buy Digicel Pacific With Australian Goverment Help
19 7월 2021 - 7:49AM
Dow Jones News
By Stuart Condie
SYDNEY--Telstra Corporation Ltd. is considering buying the South
Pacific operations of telecommunications company Digicel Group
Ltd., with majority financial support from the Australian
government.
The ASX-listed firm on Monday said it had held talks over a
potential acquisition of the 15-year-old Digicel Pacific, which
operates in Papua New Guinea, Fiji, Nauru, Samoa, Tonga and
Vanuatu. It generated earnings before interest, tax, depreciation
and amortization of US$235 million in the 2020 calendar year with a
strong margin, Telstra said.
Telstra said it was initially approached by the Australian
government for technical advice in relation to the commercially
attractive and region-critical asset.
Telstra's equity investment would be the minor portion of the
overall transaction, it said. There is no guarantee of a
transaction, it added.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
July 18, 2021 18:42 ET (22:42 GMT)
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