Telecom sells AAPT

Telecom has sealed a deal with iiNet Limited whereby AAPT will sell its consumer division to iiNet for AU$60 million.

The transaction is subject to iiNet shareholder and customary regulatory approvals but Telecom says it estimates the transaction will have a net negative impact on AAPT’s FY11 of around AU$10 million.

Telecom also announced that is has sold its 18.2% stake in iiNet to institutional and sophisticated investors for approximately A$70 million.

“Together these transactions rationalise non-core assets, strengthen Telecom’s financial position, and help reposition AAPT’s operations into a focused, network-centric wholesale and corporate business that is well positioned for future growth” said Telecom CEO, Paul Reynolds.