itb-nz logo
Story image

US backer eyes full ownership of 2degrees

26 Feb 2010

The US investor in 2degrees has been cleared by the Overseas Investment Office to acquire 100% of the fledgling mobile company.

Trilogy International, which currently has a 57% stake, was granted consent in January to acquire complete ownership, according to a decision summary posted on the Land Information New Zealand website. The value of 2degrees is revealed to be $170,107,313 as at 31 March 2009. “The applicant intends to acquire further ordinary shares in Two Degrees through participation in proposed pro rata capital raising from existing shareholders, if such shares become available, and also wishes to have the right to take up available ordinary shares in capital raisings that are not taken up by the shareholders in accordance with their entitlements. This may result in the Applicant increasing its percentage interest in Two Degrees,” the decision reads.

Trilogy recently increased its stake from 52% to 57% after the Hautaki Trust failed to raise an additional $20 million to retain its 20% stake in the company. Hautaki’s stake was reduced to 13%. At the same time minority shareholder Communication Venture Partners (CVP) increased its ownership from 25.7% to 28.5%. The remaining shares are owned by KLR Hong Kong.

Trilogy chairman John Stanton visited Auckland in January and spoke at an American Chamber of Commerce breakfast, where he urged the government to regulate on Mobile Termination Rates. However, on Monday the Commerce Commission in a split decision recommended against regulation in its final report to the government. The decision now rests with ICT Minister Steven Joyce, who has called for further submissions.

2degrees announced two weeks ago it has acquired 206,000 subscribers since it launched in August last year.

Pictured – Trilogy chairman John Stanton (far left) with Trilogy executives Rick Dunn and Ann Saxton.