Spark New Zealand to acquire TeamTalk

Company News

by David Chau

Telecommunications company Spark New Zealand (ASX:SPK) has filed a notice of intention to acquire a smaller telco, TeamTalk, at NZ$0.80 cents per share.

Spark says this acquisition consistent with its strategy to achieve greater control of the end-to-end customer experience for its business customers.

On Friday, 3 February 2017, TeamTalk shares closed at 45 cents, but have since rocketed 66.67% to 75 cents.

TeamTalk is made up of three operating businesses. They are: TeamTalk (which provides mobile radio services), CityLink (who is a provider of metro fibre services primarily in the Wellington CBD), and Farmside (an internet service provider focused on the rural market).

Spark New Zealand posted a net profit of $352.8 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.