Telecom shareholders have voted to approve the structural separation of Telecom and Chorus.
The vote, held at Telecom’s annual general meeting today, was 99.8 percent in favour of the separation, which is a condition for Telecom participating in the ultra-fast broadband initiative.
A statement from Telecom confirming the vote reads: “Following the demerger, ‘New Chorus’ will be a standalone, separately listed company, allowing it to be the Crown’s partner for approximately 70 percent of the Ultra-fast broadband initiative.”
Telecom chief executive Paul Reynolds says in the statement: “The shareholder vote marks a critical step in the creation of an entirely new structure for the telecommunications industry in New Zealand.
“We are very pleased to have received our shareholders’ consent for this significant step, and Telecom’s focus is now on the swift enactment of the split, along with ensuring both companies are well-positioned as New Zealand moves into the fibre future.”
Telecom will now move to finalise the demerger, via a court-approved scheme of arrangement, expected to be complete by November 30, the statement says.
Telecom chairman Wayne Boyd will retire once the demerger is complete; Sue Sheldon will become chairman of Chorus.
A transcript of Boyd's speech at the AGM can be found at the NZX website.