26 Oct 2011

Telecom shareholders say yes to split

7:26 pm on 26 October 2011

Telecom shareholders have agreed to split the company in two.

Its phone retail and its network arms will become two standalone listed firms.

At a quiet annual general meeting in Auckland on Wednesday, 99.8% of the votes cast backed the split, which is required in order for Telecom to participate in the government's ultra fast broadband initiative.

"Out of this demerger we will have two new companies both listed on the stock exchange and they will have the capability to deliver for shareholders," chairman Wayne Boyd said.

Mr Boyd will stand down as chairman next month.