Australia’s Telstra sells NZ subsidiary to Vodafone for A$660 million

Australia's leading telecommunications company Telstra Corp Ltd will sell its wholly-owned New Zealand subsidiary TelstraClear to Vodafone New Zealand for approximately NZ$840 million (A$660 million).

Telstra said that the sale of TelstraClear's voice and data based service and network infrastructure is in line with the company's overall strategy of divesting its non-profitable businesses.

Telstra's chief executive officer David Thodey said, ''The deal is a natural one, bringing together TelstraClear's fixed telecommunications and data products and corporate client-base with Vodafone New Zealand's mobile offering and retail customer-base.''

''The transaction is consistent with Telstra's overall strategy and capital management framework that we outlined in April,'' Thodey said.

Auckland-based TelstraClear is the second-largest communications provider in New Zealand serving businesses, government, wholesale and retail sectors. It has over 2.3 million customers and holds a 16-per cent market share in the country. 

In 2003, the company introduced its groundbreaking Triple Play phone, cable television and high-speed internet services via its hybrid fibre co-axial network to customers in Kapiti, Wellington and Christchurch.