Australian telecommunications company Telstra Corporation Limited has today announced the proposed acquisition of Digicel Pacific Limited for USD1.6 billion (FJD 3.3 billion).
The deal, which is backed by the Australian government, is expected to be completed in the first quarter of 2022.
Telstra Corporation Ltd will own 100% of the Digicel Pacific operations in six countries in the South Pacific region including Papua New Guinea, Fiji, Samoa, Vanuatu, Tonga and Nauru.
In a statement released today, the Australian government say they are committed to provide a financing package through Export Finance Australia to support Telstra’s acquisition, consistent with Australia’s longstanding commitment to growing quality investment in regional infrastructure.
The package will include debt and equity like securities designed to secure the Government a long-term return on its financing.
The Regional CEO of Digicel Hub Markets, Shally Jannif, said that Digicel Pacific is confident in working with the Telstra team to continue increasing coverage across the region.
Telstra International CEO Oliver Camplin-Warner said that Telstra will retain the same Digicel brand.
“We’ll retain the same Digicel brand that customers know and love today with the same team and the same services that customers have come to rely on”, said Oliver Camplin-Warner.