Telecom confirms November 30 demerger date

Last formality before demerger is completed

Telecom has confirmed receipt of the final court orders from the High Court, which allows the demerger of Chorus to proceed as planned, on 30 November 2011. Telecom says it will demerge its Chorus local fixed line infrastructure business, to enable it to participate in the Government’s Ultra-fast Broadband initiative.

“Receipt of the court orders was the final box to be ticked in the demerger process,” said Paul Reynolds, Telecom CEO, in a statement. “I can now confirm that Telecom will complete this extremely complex transaction, which has been delivered in a very tight timeframe, on schedule.”

Chorus shares will be distributed to eligible Telecom shareholders at a ratio of one Chorus share for every five Telecom shares held.

The record date for the demerger is 7.00pm on 25 November 2011. All eligible Telecom shareholders who hold Telecom shares then will be entitled to receive Chorus shares under the demerger.