Vodafone has bought the remaining 30% stake in Farmside from telecommunication services provider TeamTalk for $3 million.
Vodafone New Zealand acquired 70% of Farmside for $10 million in cash, closing the deal in May 2017.
Back then, TeamTalk CEO Andrew Miller said the deal would enable TeamTalk to reduce debt and fund its capital programme.
The initial transaction last year included put and call options that enabled TeamTalk to sell its remaining stake to Vodafone for $3.0 million cash at any time within three years and allowed Vodafone to acquire the remaining 30% of Farmside.
Vodafone’s CEO Russell Stanners comments on the deal announced today, stating: “With Farmside now firmly part of the Vodafone whānau, we can continue to deliver better outcomes for these communities and increase our presence in the rural broadband market.”
Stanners says rural communities are important to Vodafone and this investment further deepens the company’s long-standing commitment to them.
The parties have agreed that the ownership change becomes effective from midnight 31 May 2018.
Miller says Vodafone and TeamTalk will continue to work together on strategic opportunities where appropriate.
He adds, “This agreement consolidates TeamTalk’s business.”
“It enables us to focus on our key priorities: rolling out our National Digital Tier III Network and undergrounding our Fibre Network in Wellington’s CBD, to deliver greater resiliency and additional services to customers.”