The Australian federal government and major telecommunications firm Telstra have pulled the trigger on a US$1.6 billion (AU$2.1 billion) takeover of a dominant South Pacific mobile telecommunications business amid ongoing concerns Beijing could step in and deepen its foothold in the region. The government and Telstra announced its decision on Oct. 25 to acquire the South Pacific business of Digicel, which provides mobile and network services across Papua New Guinea, Nauru, Samoa, Vanuatu, Tonga, and Fiji—some of Australia’s closest neighbours. Currently, Beijing has strong relations with many Pacific island nations. The deal will see the federal government do most of the initial heavy lifting, financing US$1.33 billion (AU$1.7 billion) of the asking price via its export credit agency, Export Finance Australia. Telstra will tip in US$270 million (AU$361 million) and will own 100 percent of Digicel Pacific upon completion of the deal. In a joint statement, Foreign Minister Marise Payne, …
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