Telstra, Oz gov’t wrap up US$1.6-billion Digicel Pacific acquisition

Telstra has completed the acquisition of Digicel Pacific following receipt of all necessary government and regulatory approvals.

The acquisition of Digicel Pacific was announced in October 2021 in partnership with the Australian Government.

Telstra contributed US$270 million of equity to the US$1.6-billion purchase price and the Australian Government, through Export Finance Australia, provided the remaining US$1.33 billion through a combination of non-recourse debt facilities and equity like securities. Telstra owns 100% of the ordinary equity.

Telstra CEO, Andrew Penn said Digicel Pacific would be operated by Telstra International, headed by Oliver Camplin-Warner, as a stand-alone business, with the same team that Digicel Pacific’s customers know and love today.

“We have been working closely with Pacific Governments on this acquisition and we’d like to thank them for their cooperation and support,” said Penn.

Digicel Pacific will be overseen by a Telstra controlled board chaired by Telstra Enterprise Group Executive David Burns.

Digicel Pacific is the leading provider of communications services across PNG, Fiji, Nauru, Samoa, Tonga and Vanuatu. 

The company had around 2.8 million subscribers and 1,700 employees generating US$466 million in service revenue for the financial year ended March 31, 2022.