Telecom achieved a higher price than the market had expected in selling troubled Australian business AAPT for $A450 million, an analyst says.
Chief financial officer Jolie Hodson said the company planned to focus its efforts on the New Zealand business.
The company entered the Australian market in 1999 when it paid $A2 billion for AAPT and the purchase of Power Tel in 2007 cost a further $A326 million.
Those Australian acquisitions had resulted in a significant loss of capital for Telecom and that loss was the reason it is re-focussing on the New Zealand market, Ms Hodson said.
Forsyth Barr analyst Blair Galpin said Telecom had tried to sell AAPT several times and was recently tipped to realise $A300-$A400 million for it.
"The current price of $A450 million is probably better than what was expected two or three months ago," Mr Galpin said.
In July 2010, Telecom sold part of the AAPT business for $A60 million to internet provider iiNet, as well as selling an 18% stake in iiNet for about $A70 million.
Ms Hodson expected the AAPT transaction to be completed at the end of February.
Telecom says it will use the proceeds to repay debt.
