LONDON-Vodafone Group plc announced plans to buy the national Global System for Mobile communications network in New Zealand for about $369.1 million.
Vodafone Europe Holdings BV reached an agreement to buy the network and related assets operated by BellSouth New Zealand Ltd. as well as all the issued share capital in BellSouth New Zealand from BSNZ Wireless Holdings Inc. and ST Telecommunications Pte Ltd.
The transaction would give Vodafone more than 120,000 new customers-about 19 percent of the cellular market in New Zealand. The country’s penetration rate is about 17 percent.
BellSouth New Zealand is a partnership of BellSouth Corp. and Singapore Technologies. The company’s net assets at the end of 1997, which are being acquired debt-free, were valued at $118.1 million. BellSouth New Zealand’s loss before interest and tax during 1997 was about $3 million.
“Vodafone is delighted that its offer to purchase the only GSM network in New Zealand has been accepted,” said Chris Gent, chief executive of Vodafone Group. “This acquisition will complement [our] activities in Australia and Fiji and we are looking forward to developing the business.”
