TelstraClear sale: what the CEOs say
The CEOs of Vodafone and TelstraClear have spoken to media about the purchase of the latter from Australian parent Telstra, Vodafone boss Russell Stanners in particular stressing the complementary qualities of the two companies.
Pending regulatory approval, the $840 million deal will see TelstraClear's business integrated into that of Vodafone over the next 18 months, Stanners says, 'bringing together two great teams' to tackle a rapidly changing marketplace.
"We see these businesses as very, very complementary," Stanners says, citing examples like presence around the country (Vodafone in Auckland, TelstraClear around the rest of the country), product strengths (Vodafone in mobile, TelstraClear in fixed line), and brand presence (Vodafone among consumers, TelstraClear among enterprises).
"The key is bringing together these teams and unleashing them," Stanners says.
On the management side, Freeth looks set to continue leading TelstraClear during the integration period.
He took the opportunity to thank his staff, as well as parent company Telstra for its support of the subsidiary's endeavours.
"They have been a consistent and trusting shareholder that's allowed us to run autonomously... and unhesitantly allowed major capital investment," Freeth says.
While some jobs may be lost 'in back office areas where there are some overlaps', Stanners says the deal is 'all about us growing and investing in the marketplace'.
That marketplace is set to become tougher, Stanners adds, thanks to the government's Ultra Fast Broadband (UFB) project.
"We see our partners as potential competitors going forward," Stanners says, referring to system integrators like Datacom and IBM as well as content partners on the consumer side.
Meanwhile, acting Telecom CEO Chris Quin has also offered his two cents on the deal, saying he welcomes the competition and that his company is 'in a strong position to succeed and grow our business'.
"Demerger has given us clarity and focus," Quin says in a statement.
"We are well placed to compete on both of the key areas of competition [mobile and broadband].
"We also know how distracting major transactions such as Vodafone's can be at both a regulatory and local execution level, and it is not a done deal yet."
Image: Vodafone CEO Russell Stanners.