CS Mobile Pty Ltd, a joint venture between Nedlands-based mobile phone company Commoditel Ltd and its takeover target Sonnet Corporation Ltd, has acquired AAPT's stand-alone post paid mobile customer base.
CS Mobile Pty Ltd, a joint venture between Nedlands-based mobile phone company Commoditel Ltd and its takeover target Sonnet Corporation Ltd, has acquired AAPT's stand-alone post paid mobile customer base.
The base will bring 35,000 additional post paid customers to the company, with customers to continue to be connected via the Vodaphone network.
Commoditel had acquired the AAPT prepaid consumer base in February last year, operating through its Just Prepaid Mobile arm.
The full text of a company announcement is pasted below
CS Mobile Pty Ltd, a 50:50 Joint Venture between CommodiTel Limited (ASX:CMO) and Sonnet Corporation Limited (ASX:SNN), today signed a Sale Agreement (subject to final ratification by the AAPT Board) to acquire the stand-alone post paid mobile customer base of AAPT Limited (100% owned by Telecom New Zealand).
The AAPT stand-alone post paid customer base is supported by the Vodafone Network and comprises around 35,000 post paid mobile customers. The acquisition brings with it significant revenues of approximately $10 million per annum.
CS Mobile and AAPT have worked together to structure a deal that works for the AAPT stand-alone post paid mobile customers, delivers greater scale to CommodiTel and Sonnet, and allows AAPT to focus on its bundled solutions strategy in the consumer market.
David Sweet, Managing Director of CommodiTel, said that the AAPT stand-alone post paid mobile customers will continue to be connected via the Vodafone Network.
"Our focus will be to continue to deliver great service and value for money," he said.
Paul Broad, CEO AAPT, said the sale of AAPT's stand-alone post paid mobile customer base was in line with the organisation's focus on providing bundled services to customers.
"AAPT's strategy to transition our residential customers to bundled services meant we required a good home for our loyal stand-alone post paid mobile base.
"CS Mobile, with its two shareholders CommodiTel and Sonnet, offers a very experienced operational team as well as providing AAPT with the utmost confidence for successful transition and ongoing servicing of these customers. We're pleased this deal delivers the optimum outcome for both parties and our customers," said Mr. Broad.
As previously announced to the market, CommodiTel's proposed friendly takeover of Sonnet is progressing well with acceptances for more than 73% of Sonnet shares (including acceptances from the directors of Sonnet). In the event that the takeover is successful, CommodiTel's combined customer base (including CS Mobile) would exceed 140,000 pre and post paid customers, making it the largest Vodafone MVNE in the region. As previously indicated by the CMO Board, the 1 for 10 non-renounceable rights issue of shares to the shareholders of the merged group is
expected to proceed in July to help fund this transaction at an issue price of 2 cents per share.
"This acquisition by the CS Mobile joint venture highlights the synergies that can be achieved through the coming together of CommodiTel and Sonnet. The combined entity will be structured to absorb this base without the need to significantly expand our overheads," said Mr. Sweet.
