The shareholders of incumbent Telecom New Zealand have approved the company’s plan to separate its retail unit from its infrastructure unit. Approximately 99.8% of investors voted in favour of the proposal.
In late May, Telecom NZ said that it would…
The shareholders of incumbent Telecom New Zealand have approved the company’s plan to separate its retail unit from its infrastructure unit. Approximately 99.8% of investors voted in favour of the proposal.
In late May, Telecom NZ said that it would carry out structural separation, after officially winning the bid to build the country’s US$2.8bn ultra-fast broadband project (UFB).
While the retail business will retain the Telecom NZ brand name, the infrastructure business will be called New Chorus.
“Following the demerger, ‘New Chorus’ will be a stand-alone, separately listed company, allowing it to be the Crown’s partner for approximately 70% of the Ultrafast Broadband initiative,” the company said in a statement on 26 October.
State-owned Crown Fibre is the company responsible for the UFB project.
Telecom NZ added: “The demerger will also enable the introduction of a new regulatory environment, along with the appointment of a new chairman and several new directors for Telecom, and a new board for Chorus.
“Telecom Chairman Wayne Boyd will now retire from the Telecom board upon demerger, along with independent directors Ron Spithill and Sue Sheldon. Sue Sheldon will take up a new role as chairman of Chorus.”
About a month ago, the New Zealand government had already approved the structural separation plan. In the statement, Telecom NZ said it expects to finalise the demerger, via a court approved scheme of arrangement, by 30 November 2011.
The UFB initiative is expected to deliver fibre connectivity to schools, hospitals and 90 percent of businesses by 2015, and to three-quarters of all New Zealanders by 2020.
