Telstra Divests Fixed-Line Assets to Uniti Group for A$140 Million
By Stuart Condie
SYDNEY--Telstra Corporation Ltd. will divest Australia's
second-largest private fiber-to-the-premises broadband network to
Uniti Group Ltd. for 140 million Australian dollars (US$105.8
Uniti on Wednesday said it had entered into a binding agreement
to acquire the assets for an initial A$85 million upon completion.
The communications provider said it will pay another A$20 million
over three years, and A$35 million upon migration of services and
The Telstra Velocity and South Brisbane Exchange actively
services about 50,000 premises, with another 15,000 connected to
the network, Uniti said.
Uniti said it will fund the acquisition through debt and an
equity raising, comprising an underwritten A$50 million placement
and A$10 million share purchase plan.
Uniti last month completed the acquisition of ASX-listed
telecommunications infrastructure firm OptiComm.
Write to Stuart Condie at firstname.lastname@example.org
(END) Dow Jones Newswires
December 15, 2020 18:22 ET (23:22 GMT)
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