Spark affirms its 80 cent offer price for TeamTalk, and that the conditions
of its offer will not be waived should shareholders approve the proposed
Farmside transaction
Spark New Zealand is today affirming that:
o Its offer price for 100% of TeamTalk''s ordinary shares remains at 80 cents
per share. This price is full and final for this offer;
o It has waived the condition requiring 90% shareholder acceptance, meaning
Spark''s offer will become unconditional as to the level of acceptances upon
achieving more than 50% shareholder acceptance;
o In the event that TeamTalk shareholders vote to approve the proposal to
sell a 70% share of the Farmside subsidiary to Vodafone at the Special
Meeting on April 12th, Spark will not waive the conditions of its offer that
would be breached, and Spark''s offer will lapse.
Spark''s Chief Financial Officer, David Chalmers, said "We have taken time to
consider the Target Statement and Independent Adviser reports provided to
shareholders.
"As New Zealand''s largest digital services company, Spark has a strong
insight into industry dynamics, and what the future shape of communication
networks may be. We do not believe Grant Samuel''s report adequately accounts
for the market risks to the CityLink and TeamTalk Mobile Radio businesses
over coming years.
"Spark needs to be disciplined in how we invest our shareholder''s capital. We
will not pay a significant premium for an unsubstantiated forecast that is
light on detail and in our view is unlikely to be achieved. Our offer
represents a premium of 78% over the last closing price before Spark issued
its Notice of Intention, while the Independent Adviser believes that, at the
mid-point of the range, the shares are worth more than four times the
pre-Notice price.
"TeamTalk shareholders should carefully consider whether they prefer a clear
exit path with Spark''s offer, or to continue as an investor in TeamTalk and
rely upon the Board and Management to deliver the turnaround they''ve talked
about."
In the event shareholders vote to approve the Farmside transaction, Spark''s
offer will lapse and shareholders will no longer be able to accept Spark''s
offer. Spark would then seek alternative options to CityLink to achieve our
Wellington metro fibre objectives.
In the event Spark''s offer lapses, Spark wishes TeamTalk''s Board, Management
and shareholders well.
Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028,
Auckland, New Zealand
- ENDS -
For media queries, please contact:
Richard Llewellyn
Head of Corporate Communications
+64 (0) 27 523 2362
For investor relations queries, please contact:
Dean Werder
General Manager Finance and Business Performance
+64 (0) 27 259 7176
End CA:00299346 For:SPK Type:TAKEOVER Time:2017-04-04 09:00:21