[LINK] Fibre Networking - Transact sells to iiNet
kim at holburn.net
Wed Nov 23 14:13:36 AEDT 2011
Seems to me that this - ownership of the last mile by a company was
what NBN was created to avoid. This is a strange thing. Transact is
not FTTH/FTTP, it is FTTN nor does it have full coverage even in the
suburbs it covers.
Does this mean NBN is giving up FTTP for transact suburbs or does this
mean that TransACT has given up and has realised that it can't sell to
NBN because NBN doesn't want it?
On Wed, Nov 23, 2011 at 11:26 AM, Tom Koltai <tomk at unwired.com.au> wrote:
> TVG Capital, Motor Trades Association of Australian Super and ACTEW are
> among investors that will get $60 million from the sale of Canberra
> broadband provider TransACT to iiNet - an asset that cost them $280
> million to build over 10 years.
> Perth-based iiNet expects to acquire 4500 kilometres of broadband
> network and 40,000 customers through the deal, including 50 lucrative
> contracts with government departments.
> Chief financial officer David Buckingham said iiNet was ''paying $60
> million for the business including the network and that is the cost to
> us of this business''.
> Advertisement: Story continues belowiiNet expects the deal to be
> earnings accretive and would fund the acquisition through existing cash
> and debt facilities, leaving it with a gearing ratio of 70 per cent.
> Chief executive of iiNet, Michael Malone, said TransACT's infrastructure
> was unlikely to be over-built by NBN Co's fibre optic network.
> ''Over-building TransACT, particularly in Canberra, would be
> commercially and politically odd,'' he said.
> TransACT has been on the market since June 30 and the deal with iiNet
> should be done by November 30. It has eight shareholders who contributed
> $255 million in equity. TransACT was carrying a loss of $200 million at
> June 30 according to company documents.
> TransACT chief executive Ivan Slavich said 43 per cent shareholder, TVG,
> had to sell its stake to crystallise its investment. TVG invested $US29
> million in 2000, its website said. ''[TVG] established super funds which
> last for 10 years. At the end of the 10 years they need to close those
> funds and TransACT was one of the last investments,'' he said.
> Canberra's electricity provider ACTEW has invested $60.8 million in the
> company since 2000, giving it an 18 per cent stake valued at $4.7
> million. It expects to make a ''modest profit . above the $4.7 million
> carrying value,'' a spokeswoman said.
> A spokesman for MTAAS would not comment for commercial reasons.
> It seems that Fibre infrastructure returns would depend on first
> minimising anti-competitive interference.
> Link mailing list
> Link at mailman.anu.edu.au
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