Vodafone New Zealand has announced that it has completed the acquisition of 70% of the shares in BayCity Communications (trading as Farmside) for NZD10.0 million (USD7.1 million) in cash. Farmside operates TeamTalk’s rural broadband and satellite business. Going forward, TeamTalk will continue to manage Farmside under a management contract. Russell Stanners, Vodafone NZ CEO commented: ‘The investment by Vodafone in Farmside further deepens the strategic relationship between ourselves and TeamTalk. There are other opportunities for us to partner, for instance sharing fibre including future upgrade and maintenance costs.’
As previously reported by TeleGeography’s CommsUpdate, in March TeamTalk confirmed that its directors had unanimously recommended that the company’s shareholders reject Spark’s hostile NZD23 million takeover bid for the whole business. The rejection allowed Vodafone to step in with a reduced offer for TeamTalk’s rural business, which was duly accepted.