Telstra Acquires Digicel Pacific in Partnership With Australian Government
October 24 2021 - 6:12PM
Dow Jones News
By Stuart Condie
SYDNEY--Telstra Corp. Ltd. agreed to acquire mobile networks in
six Pacific nations in a US$1.6 billion deal largely funded by the
Australian government, which foreign policy experts have said
wanted to block China from buying the assets.
Australia's largest mobile communications provider on Monday
said government-owned Export Finance Australia would provide
US$1.33 billion toward the deal. Telstra said it would contribute
the remaining US$270 million and own 100% of Digicel Pacific's
ordinary equity.
Telstra Chief Executive Andrew Penn said Digicel Pacific, which
operates in Papua New Guinea, Fiji, Nauru, Samoa, Tonga and
Vanuatu, is a commercially attractive asset and critical to
telecommunications in the region.
The move is the latest by the Australian government seeking to
limit Chinese influence in the region, particularly in the
telecommunications sector. Australia has banned Chinese telecoms
firm Huawei Technologies Co. from involvement in its 5G mobile
network.
Mr. Penn said the deal would complete within three-to-six
months.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
October 24, 2021 17:57 ET (21:57 GMT)
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