Minister awaits regulatory process

INFORMATION and Communication Technology Minister Timothy Masiu has acknowledged Telstra’s latest notice announcing its intention to purchase Digicel Pacific.
“Telstra, Australia’s biggest telecommunications company, (on Monday) announced that it intends to acquire Digicel Pacific,” he said in a statement.
“I can confirm that I have received a co-signed letter from Telstra chief executive officer and managing director Andrew Penn and Telstra international chief executive officer Oliver Camplin-Warner formally advising me.”
Masiu said that with the terms of the sale now settled, he expected regulatory processes to be invoked by Telstra International and Digicel.
He said the latest Telstra notice had implications for national government regulations.
The National Information and Communication Technology Authority (Nicta) will now await a submission from Telstra International and Digicel, as one of the regulatory approval processes that need to be invoked.
Telstra, this week, announced that the company together with the Australian government were buying Digicel Pacific operation for US$1.6 billion (about K5.5 billion).
Telstra in a statement said the acquisition included an additional US$250 million (about K857.4 million) subject to business performance over the next three years.
The Digicel business will be owned and operated by Telstra.
Telstra is contributing US$270 million (about K926 million) of equity to the US$1.6 billion purchase price and the Australian government, through export finance.
Australia is providing the remaining US$1.33 billion (about K4.45 billion) through a combination of non-recourse debt facilities and equity like securities. Telstra will own 100 per cent of the ordinary equity.
Penn said Telstra was initially approached by the Australian government to provide technical advice in relation to Digicel Pacific and subsequently considered acquiring the business with financial and strategic risk management support from the government.
Penn said the partnership represented an important milestone in the company’s relationship with the Australian government.