Melbourne-based Vocus Group has ended all discussions over the sale of its Vocus Communications New Zealand unit – which also includes local subsidiaries CallPlus, 2talk, Orcon, Slingshot and Flip – saying that it failed to receive any offers attractive enough to entice a sale. Vocus Group chairman Bob Mansfield noted: ‘Vocus NZ is an excellent business with strong leadership, an attractive growth profile, a clear competitive position and a track record of delivering solid returns on capital. The board intends to continue to invest in and grow Vocus NZ to enable that business to realise its strategic potential for shareholders.’
TeleGeography notes that the New Zealand businesses were put up for sale in October 2017, with a view to agreeing a sale by June 2018, and helping to repay debt accrued during the Australian telco’s expansion. Buyers linked with the Vocus NZ assets included: private equity giant TPG Capital, local mobile player 2degrees and utility-provider-turned-ISP Trustpower. Bidding stalled at AUD250 million (USD197 million), however, well below the group’s initial valuation of around AUD500 million.