Sharechat Logo

TeamTalk mops up CityLink in share swap

Wednesday 2nd December 2009

Text too small?

TeamTalk, the country's largest mobile radio company, has mopped up the remaining shares in CityLink through a share swap worth some $890,000.

CityLink Holdings, which is owned by four current and former employees of CityLink, will swap their investment in the Wellington fibre network operator for 386,598 shares in TeamTalk, with a one-year option to double their holding at a discounted price of $2.24 a share.

Stock in TeamTalk was unchanged at $2.30, and has climbed 18% in the past 12 months.  

"The deal increases our economic interest from over 90% to 100%, thus giving us more control over one of our strategic assets and therefore provides us with more flexibility," said managing director David Ware in a statement.

"We have been particularly happy with its performance since we first invested in the group three years ago."  

TeamTalk is positioning itself to grow its turnover by about a third in the next three to five years as it looks to tap the government's $1.5 billion roll-out of ultra-fast broadband.

It plans to pitch itself as a preferred partner and replicate its current Auckland CBD and Wellington CityLink networks. 

CityLink was formed as a Wellington City Council initiative in 1995, which ran fibre-optic cable along the overhead trolley-bus cables to implement low-cost high-speed internet network for local businesses.

The network has been expanded into several Wellington suburbs and the Auckland central business district.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

TeamTalk cuts annual earnings guidance, reviews management structure
TeamTalk bemoans subsidy to rivals, cuts annual earnings guidance on telco levy
TeamTalk approve Farmside purchase for up to $42M
TeamTalk to buy Farmside for up to $42.1M in rural push
TeamTalk accused of taking value from subsidiary
TeamTalk increases profit
TeamTalk boosts profit 38%, outlook hinges on broadband decisions
Daily ShareChat: TeamTalk
TeamTalk's mobile radio business to fund promising sectors' growth