22 Oct 2013

Telecom considers selling AAPT - report

1:26 pm on 22 October 2013

Telecom is considering selling its Australian business, AAPT.

Earlier this year Telecom ruled out selling the business which provides internet and mobile services to business, government and wholesale customers.

But speculation has been rife in the last day that it will be put on the block.

Telecom says no decision has been made on whether it will proceed with the sale of AAPT.

But it says the sale of the Australian business is consistent with its strategy of becoming what it describes as a more future-oriented, competitive provider of services over its networks and the cloud.

The Australian Financial Review had reported that the Australian corporate telecommunications provider was up for sale, along with 10% percent of Telecom's stake in mobile business, Hutchison Telecommunications Australia.

The newspaper says Telecom has started the process of selling AAPT to a select group of potential bidders.

AAPT's adjusted operating profit declined 17% to $30 million for the six months to the end of June, compared with the same period last year.

Analysts have said in the past that it makes sense for Telecom to consider selling AAPT to an Australian phone company so that it could concentrate on its home market.

Telecom's half stake in New Zealand's sole international cable link provider, Southern Cross, has also been pointed to as another candidate for sale.

Telecom says it will make no further comment while it considers the sale.