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MyNetFone to Buy International Voice Business from Spark

MyNetFone to Buy International Voice Business from Spark
Apr 02, 2015 By Wise-owl

MyNetFone Limited (ASX:MNF) has announced a deal with the New Zealand telco Spark. The signed agreement underlines the sale of Spark’s international voice business to MyNetFone. The New Zealand based company will retain its international data business, a spokesperson for the company said. The international voice business is part of Telecom New Zealand International (TNZI) and had forecasted earnings before interest, tax, depreciation and amortisation (EBITDA) of around NZ$3m to NZ$4m. The price tag for the deal comes in at around NZ$22.4m (A$21.97m) and is expected to add A$90m to A$100m in annual revenue from wholesale voice trading. The pretax earnings are expected to come in at around A$3.5m in the first year before potentially increasing due to synergies and savings. The sale will be completed by the end of the month.

MyNetFone is a provider of VoIP broadband phone and IP network services. Chief executive Rene Sugo said the acquisition will transform the company from a domestic business to a significant international player in the global voice marketplace. The TNZI brand sells digital, voice, data and mobile services. The sale of the TNZI voice brand to MyNetFone has been hailed as a “huge step up”, said Mr. Sugo. “It would have taken the company many, many years and a far greater investment to build the team, capabilities, customer base and network reach that this great deal brings us.” Shares of MNF surged after the announcement, increasing by 43c, or 14.29 per cent, to $3.44 per share around 3:30pm on Thursday. Although MNF advanced almost 65 per cent in the last 12 months, it is down 6 per cent so far this year.

 

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Wise-owl Author: Wise-owl Apr 02, 2015

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