Australia's largest mobile phone network Telstra (ASX:TLS)
has confirmed it has been in discussions to buy Digicel Pacific, in partnership with the Federal Government. The discussion is incomplete, and there is no certainty that a transaction will proceed.
Digicel Pacific is an international mobile phone network and home entertainment provider operating in the south pacific region, including Papua New Guinea, Fiji, Nauru, Samoa, Tonga and Vanuatu. The company enjoys a strong market position, generating EBITDA of US$235 million in 2020.
Telstra was initially approached by the Australian government to provide technical advice in relation to Digicel Pacific. If Telstra were to proceed with a transaction, it would be with financial and strategic risk management support from the government.
Shares in Telstra (ASX:TLS)
are trading 0.66 per cent lower at $3.74.