Telecom New Zealand is set to sell off AAPT at a fraction of the price it paid for the company back in 1999, with TPG stepping out to buy the company for AU$450 million.
Telecom NZ this morning confirmed to the Australian Securities Exchange that TPG would pick up the business telecommunications and cloud company by the end of February 2014.
The transaction was said to be
free of conditions precedent.
It had been reported that Telecom NZ had been looking to sell the Australian business since at least October, with Goldman Sachs recruited to manage the transaction.
Including the AU$60 million iiNet paid for AAPT’s consumer division in 2010, the total value for AAPT is significantly lower than the AU$2.2 billion that Telecom New Zealand paid for it in the peak of the dot com boom in 1999.
AAPT’s revenue has declined over the last few years, with the company this year reporting earnings before interest, tax, depreciation, and amortisation of AU$57 million, down by AU$10 million on the previous financial year — via redwolf.newsvine.com