Vodafone New Zealand Limited (Vodafone NZ) today announced it has reached an agreement with TeamTalk Limited (TeamTalk) (NZX: TTK) to buy the remaining 30 percent stake in BayCity Communications Limited, trading as Farmside, for $3.0 million.
In June 2017 Vodafone New Zealand purchased 70 percent of Farmside for $10 million in cash. As a part of this transaction, Vodafone retained the right to acquire the remaining 30 percent for $3.0 million at any time within a three-year period. Today Vodafone exercised that right.
Farmside’s General Manager, Jason Sharp, says the acquisition is exciting for the business which will continue to operate as a separate entity to Vodafone NZ.
“It’s business as usual for our customers and our team here in Timaru, we can continue to do what we love, which is connecting rural New Zealanders. This investment is a significant opportunity to enhance services and products available to our customers”.
“It also drives home the importance of the Farmside brand, its value and level of trust within the rural community is significant, which Vodafone has recognised” Jason says.
Vodafone’s Chief Executive, Russell Stanners says the investment further deepens Vodafone’s commitment to rural communities.
“With Farmside now firmly a part of the Vodafone whanau, we can continue to deliver better outcomes for these communities and increase our presence in the rural broadband market”.
TeamTalk and Vodafone are working closely together to ensure the services provided by TeamTalk are successfully transitioned. Vodafone has no plans to make major changes at this time - staff and operations will continue to be based in Timaru, and all the services Farmside currently offers to rural customers will continue.
The ownership change becomes effective from midnight 31 May 2018.
For further information:
Elissa Downey Head of External Communications, Vodafone +64 21 866 146 or firstname.lastname@example.org