AAPT unit may be sold
But Telecom has not commented on a report it may sell its stake in mobile business Hutchison Telecommunications Australia. The Auckland-based company is considering a possible sale of AAPT, but had not made any final decision, it said in a statement.
Fairfax Media on Tuesday reported Telecom was also looking to sell its 10 per cent stake in HTA, which in turn owns half of Vodafone Hutchison Australia. But Telecom's statement on Tuesday did not touch on that possibility.
At the start of the year, Telecom chief executive Simon Moutter signalled a dramatic shift in Telecom's strategy away from being an infrastructure player and targeting mobile and data applications to drive revenue growth.
Analysts have said the sale of AAPT could fetch up to $400 million if it achieved a similar earnings multiple as the sale of Nextgen Networks.
Frequently Asked Questions about this Article…
Telecom Corp is considering selling its AAPT unit as part of its strategic shift towards becoming a service-based telecommunications operator, focusing more on mobile and data applications to drive revenue growth.
No, Telecom Corp has not made a final decision on selling AAPT. They are currently considering the possibility but have not committed to a sale yet.
Analysts suggest that the sale of AAPT could fetch up to $400 million if it achieves a similar earnings multiple as the sale of Nextgen Networks.
While there are reports suggesting Telecom Corp might sell its 10% stake in Hutchison Telecommunications Australia, the company has not commented on this possibility in their recent statement.
Telecom Corp is undergoing a strategic transformation from being an infrastructure player to focusing on mobile and data applications, aiming to drive revenue growth through these services.
Fairfax Media reported that Telecom Corp might be looking to sell its 10% stake in Hutchison Telecommunications Australia.
The shift in strategy signifies Telecom Corp's move away from traditional infrastructure roles towards embracing modern telecommunications services, which could potentially enhance their market position and revenue streams.
For everyday investors, Telecom Corp's strategy shift could mean potential changes in the company's financial performance and stock value, depending on the success of their focus on mobile and data services.
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