Vocus Group scraps plans to sell NZ business

Australian enterprise-focused fixed line operator Vocus Group has abandoned plans to sell its New Zealand business, ending negotiations with all interested parties.

In a statement, Vocus Group said none of the multiple offers it had received for the New Zealand business appropriately reflected the strategic value of the operation.

The offers also did not provide the required certainty of funding and execution, according to Vocus Group chairman Bob Mansfield.

As a result, Vocus Group now plans to “continue to invest in and grow Vocus NZ to enable that business to realise its strategic potential for shareholders.”

Vocus Group first revealed it was seeking a buyer for its New Zealand operations in October 2017, and had originally planned to complete the sale by June this year.

The company meanwhile announced that it is in the process of finalizing the appointment of several banks to arrange a full refinancing of its existing debt facilities, which will include an upsizing of the facilities. Vocus expects to complete its debt refinancing by the end of June.

“The board would like to thank our bank group for their strong support shown to date,” Mansfield said.

“We are comfortable that the increased financial capacity and covenants that will be sought through the refinancing will provide sufficient financial flexibility for the company to complete its strategic and transformation initiatives over the next few years.”