Telecom needs more time to separate
Telecom has said it will announce a revised timeframe for the structural separation of its business, once a contractual arrangement with Crown Fibre Holdings for the Ultra-Fast Broadband (UFB) project has been signed.
“Based on initial timeframes for the UFB project, Telecom has previously indicated that it would aim to enact structural separation by the end of June 2011,” said Paul Reynolds, Telecom CEO.
“However, that would have required Telecom to have reached a contractual arrangement with Crown Fibre Holdings last year for this timeframe to be achieved.
“In December last year, Telecom was confirmed as a negotiating partner for the UFB rollout and is now in detailed negotiations with Crown Fibre Holdings. However, the final timeframe for demerger will be determined when Telecom is able to reach an agreement.”
You can read all about Telecom's road to separation here.
Reynolds reiterated that structural separation is a complex and detailed undertaking, requiring far-reaching changes to Telecom’s businesses.
“There are a wide range of commercial, regulatory, legislative and disclosure considerations involved in enacting the demerger of Telecom. It will also require Telecom’s shareholders to vote in favour of the proposal.”