KINGSTON, Jamaica, Oct. 24, 2021 /PRNewswire/ — Digicel Group Holdings Limited (“DGHL”) is pleased to announce it has entered into an agreement to sell Digicel Pacific Limited (“DPL”), its wholly-owned subsidiary, to a subsidiary of the Australian telecommunications company Telstra Corporation Limited, valuing DPL at up to US$ 1.85 billion, inclusive of a three year, US$ 250 million earn-out and subject to customary post-closing adjustments. The transaction, which remains subject to customary government and regulatory approvals, is expected to complete in the first quarter of 2022.
DPL operates in six markets in the South Pacific including Papua New Guinea, Fiji, Samoa, Vanuatu, Tonga and Nauru. It recorded sales of approximately US$450 million and adjusted earnings before interest, tax, depreciation and amortisation (‘Adjusted EBITDA’) of approximately US$ 222[1] million in the year ended March 31, 2021.
On completion Digicel will have no operational responsibility for the Pacific operations though customary transition services will be provided by DGHL for a short period. There will be no change to the Digicel brand in the six markets and the current DPL management team will remain with and continue to lead the business delivering best in class telecommunications services to DPL’s valued customers in the South Pacific. To facilitate a seamless transition, Denis O’Brien will join the Board of Directors of the newly formed holding company for DPL.
Commenting, Denis O’Brien, Digicel Founder and Chairman said: “Today’s announcement is a tremendous testament to our colleagues across Digicel Group and in particular, our 1,700 staff in the Pacific. In 2006, we established a business in the South Pacific region that has helped democratise mobile communications and transform local economies and societies by making affordable best-in-class communications available to more than 10 million people across six of the most exciting markets in the South Pacific region.
“I am very pleased that today’s agreement with Telstra, our very near neighbour in the Pacific, will further enhance DPL’s infrastructure, data and call termination links with one of the largest and most reliable networks in Australia. I thank all of our colleagues in the South Pacific and beyond who have made today possible and I remain committed to ensuring a successful transition in my ongoing role as a director of the newly formed holding company for DPL.
“From a Digicel perspective, today marks a very successful realisation of a strategic investment following our entry in the South Pacific in 2006,” Mr O’Brien added.
For Reference:
| Antonia Graham | Pat Walsh |
| Head of Group Communications, Digicel | Murray Group |
| T: +1 876.564.1708 (Jamaica) | T: +353.87.2269345 |
About Digicel
As a Digital Operator, Digicel is in the business of delivering powerful digital experiences 1440 minutes of each day to customers – that’s every minute, all day, every day.
Through its world-class LTE and fibre networks, together with its suite of 8 apps spanning sports (SportsMax), music (D’Music), news (Loop), local radio and podcasts (GoLoud), TV streaming (PlayGo), enhanced messaging and marketplaces (BiP), cloud storage (Billo) and self-care (MyDigicel app), Digicel is the only operator in its markets that can deliver that.
Serving consumer and business customers in 32 markets in the Caribbean, Central America and Pacific, its investments of over US$7 billion and a commitment to its communities through its Digicel Foundations in Haiti, Jamaica, Papua New Guinea and Trinidad & Tobago have contributed to positive outcomes for over 3 million people to date.
With its Better Together brand, Digicel is making a promise of simply more to customers and communities and its 7,000 employees worldwide work together to make that a powerful reality day in, day out.
Forward-Looking Statements
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Regulation G
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[1] Financial information presented on an as-reported basis. FY21 Adjusted EBITDA excluding group recharges and other costs was US$233m.
