Vocus Group has announced it will be keeping hold of its business portfolio in New Zealand after failing to receive a bid high enough to satisfy its valuation.
The Melbourne-based communications firm has several assets across the Tasman Sea, including CallPlus, Flip and Orcon, and will continue to develop these brands.
Its original intention was to sell these assets in a bid to pay down debts accumulated through a recent period of expansion.
However, although Vocus received multiple offers for Vocus NZ, in the board’s view, none of these offers appropriately reflected the fundamental and strategic value of Vocus NZ nor provided sufficient certainty of funding and execution.
Vocus Chairman Bob Mansfield commented: “Vocus NZ is an excellent business with strong leadership, an attractive growth profile, a clear competitive position and a track record of delivering solid returns on capital.
“The board intends to continue to invest in and grow Vocus NZ to enable that business to realise its strategic potential for shareholders.”
Vocus owns an extensive national infrastructure network of metro and back haul fibre connecting all capital cities and most regional cities across Australia and New Zealand. It recently diversified its interests in New Zealand by partnering with Switch Utilities, an electricity retailer with more than 12,500 customers.