Telstra confirms discussions over possible Pacnet acquisition

17 Dec 2014

Australian fixed line incumbent Telstra has confirmed that it is in talks to acquire Hong Kong-based undersea cable operator Pacnet in a deal that could be worth as much as AUD1.00 billion (USD1.04 billion), according to the Australian Business Review. Following claims earlier this week regarding a potential deal, Telstra has reportedly entered into formal discussions to acquire Pacnet, with the latter’s owners, which include Ashmore Investment Management, Spinnaker Capital and Clearwater Capital Partners, said to be working with Credit Suisse Group on the sale.

Pacnet, provider of integrated technology solutions for enterprise and carrier customers, claims to own and manage the longest privately-owned subsea cable network — measuring up to 46,000km — in the Asia-Pacific region, with more than 110 Points of Presence (PoPs) around the world. Should Telstra successfully acquire the company it has been suggested the deal would allow the Australian operator to better service corporate clients in the region.

Australia, Hong Kong, Pacnet, Telstra (incl. Belong)