Telstra confirms Digicel take-over talks continuing
September 16, 2021 6:50 pm
Telstra is believed to be in the final stages of its two billion dollars acquisition of Digicel Pacific operation, which includes Fiji.
It’s widely reported that the Australian government will be pumping in or around $1.5b to assist in acquiring the Digicel operations.
This is a move widely viewed as a political block to China’s influence in the region as earlier it was reported that China Mobile was interested in buying out Digicel Pacific.
Digicel, with operations in Fiji, Papua New Guinea, Samoa, Vanuatu and Tahiti could have new owners as early as next month.
In July, Telstra had confirmed it was in talks to buy the Pacific operations of telecommunications firm Digicel Group in partnership with the Australian government.
This is because a sale of Digicel to a Chinese company would be a cause of concern for the Australian government amid strategic competition between U.S. allies and China in the Pacific region.
In response to questions from FBC News, Telstra says Digicel Pacific is a commercially attractive asset, enjoying a strong market position in the South Pacific region.
Telstra says given that discussions are incomplete, it is not able to say more at this stage other than any transaction will have to meet certain financial parameters.
The Australian mobile giant says should any developments happen, Telstra would own Digicel with appropriate risk protections and consolidate it in our financial results.
Digicel Fiji currently also operates Pay TV service, Sky Pacific and Unwired internet services.