Mobile radio company TeamTalk hopes to buy a Timaru-based
rural telco and will pay up to $42 million for the purchase.
NZX-listed TeamTalk announced today it had entered into a
conditional sale and purchase agreement to buy Timaru's
"At our recent AGM in Wellington I advised shareholders that
we were looking at buying another business. Today's
announcement outlines our intention," TeamTalk's managing
director David Ware said.
The purchase will require TeamTalk shareholder's approval and
a special meeting will be held in mid-December to discuss the
The upfront purchase price is $31m and could go up to
$42.05m, depending on BayCity's performance.
In the 12 months to June 2012, BayCity had revenue of $25.4m
and EBITDA of $5.8m, TeamTalk said in a statement to the NZX.
"TeamTalk is a progressive but cautious business. We have a
strong track record of success based on providing excellent
customer satisfaction and shareholder value," Ware said.
- Hamish Fletcher of the New Zealand Herald