25 Mar 2013

Kordia still negotiating to sell Orcon

7:15 am on 25 March 2013

The chair of telecommunications provider Kordia has confirmed the company is still negotiating the sale of its retail subsidiary, Orcon.

David Clarke has told Parliament's commerce select committee the state-owned company is in talks with several interested parties but no deal has been finalised yet.

When Labour MP Clare Curran asked Mr Clarke why Kordia would sell Orcon when it was such a profitable business, he replied that other parts of Kordia's business are growing more quickly and

the sale will free up cash for reinvestment, repayment of debt and/or payment a special dividend to the Government.

In response to a question about whether Kordia had any responsibility for ensuring there was competition for internet and fixed and mobile phone services, Mr Clarke said no.

But he said the company would prefer Orcon to remain in competition with Telecom and Vodafone.