Telstra snaps up Digicel with $1.3B government assist


Source: lightreading.com lightreading.com

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In perhaps the most unusual deal of the year, Telstra is to acquire Pacific operator Digicel with some generous backing from the Australian government. Telstra will take the biggest Pacific Islands telco off the hands of Irish businessman Denis O'Brien for $1.6 billion, of which government-owned Export Finance Australia (EFA) will contribute $1.33 billion. It is a win for Telstra CEO Andy Penn, who had made it clear the company had no interest in acquiring an uneconomic asset. Win, win For its equity contribution of $270 million, Telstra gets hold of a business that exceeds all of its M&A criteria...