Australia invests in $1.6 billion South Pacific telco deal

By ROD McGUIRK
Associated Press

CANBERRA, Australia (AP) — Australian telco Telstra has partnered with the Australian government in a $1.6 billion deal to buy the South Pacific operations of Digicel in a deal that would prevent a key part of the region’s telecommunications infrastructure from falling into Chinese hands. Telstra said in a statement on Monday it would contribute $270 million to the deal and hold 100% of the equity in Digicel Pacific. Telstra says the terms of the sale have been agreed and will be completed within six months. Digicel is owned by Irish businessman Denis O’Brien, is incorporated in Bermuda and headquartered in Jamaica. The government says the deal is consistent with Australia’s commitment to growing quality investment in regional infrastructure.