2degrees CEO Reynolds resigns, Trilogy takes control of company

Wednesday 15th July 2009

Mike Reynolds announced his resignation as chief executive of 2degrees just weeks before New Zealand’s third mobile phone network is set to launch.

Reynolds said he has accepted “an opportunity” in the US

He will be replaced by Eric Hertz, most recently CEO of Zumobi, a Seattle-based developer of applications designed to run on so-called smartphones.

Reynolds said he would continue “to contribute to the success of 2degrees in a different capacity,” according to a company statement. It gave no further details and a company spokesman wasn’t immediately available. The resignation will take effect after next month’s launch.

The fledgling phone company also announced that Trilogy International Partners, a North American telco investors, would double its holding in 2degrees to 52% in a transaction with Hong Kong based General Enterprise (GEMS). Trilogy agreed to acquire GEMS’ interest in 2degrees in exchange for about 8% of Trilogy’s stock.

After the ownership changes, Trilogy will be controlling shareholder, with London-based Communication Venture Partners on 26%, Hautaki Trust with 20% and business associates with 2%.

2degrees will compete with Telecom Corp. and Vodafone, which dominate New Zealand’s mobile phone market.

Businesswire.co.nz

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