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Telecom NZ shareholders OK split
27 October 2011
Shareholders in Telecom New Zealand approve spin-off of Chorus fixed-line infrastructure business
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Telecom
New Zealand
NZ
demerger
Chorus
infrastructure
fibre
Shareholders have approved of Telecom New Zealand's proposal to demerge Chorus, the firm’s fixed-line infrastructure arm. The plan to split the company into an infrastructure company and a services company now needs only court approval before the deal can be completed.
Telecom NZ hopes to complete the spin-off of Chorus, its fixed instructure unit, into a separate, independent entity by November 30.
The deal would allow Chorus to win government contracts to build 70% of the country’s planned nationwide broadband network. The government had said it would not award infrastructure contracts to companies that also delivered services over the new infrastructure.
Paul Reynolds, CEO of Telecom NZ, said: “We are very pleased to have received our shareholders’ consent for this significant step, and Telecom’s focus is now on the swift enactment of the split, along with ensuring both companies are well positioned as New Zealand moves into the fibre future.”
Following the split Chorus will have a completely independent board and management team. Reynolds will stay as CEO of Telecom NZ until the middle of 2012, when he plans to leave the company. GTB