The acquisition of South Pacific telco Digicel by Telstra is now complete. Only $188 million of the nearly $2 billion transaction was funded by Telstra; the remainder was provided by Export Finance Australia, an agency of the federal government.
With that investment, Telstra gains ownership of a company with yearly revenue of around $700 million.
In a statement to the ASX [pdf], Telstra stated that the Digicel business will continue to be run by Telstra International under the leadership of CEO Oliver Camplin-Warner. The personnel will also continue to work there.
David Burns, CEO of Telstra Enterprise group, will serve as the chairman of the company’s board, which Telstra appointed.
The largest mobile provider in the South Pacific, Digicel has more than 2.8 million users spread over six countries, including Fiji, Papua New Guinea, Samoa, Tonga, Vanuatu, and Nauru, according to a LinkedIn post by outgoing Telstra CEO Andy Penn.
CEO of Digital PNG Colin Stone stated in a video posted to LinkedIn that Telstra’s ownership would allow the carrier to keep growing its coverage in the South Pacific.