Telecom buys back stake from bank
- 07 November, 2004 22:00
Telecom has bought back the Commonwealth Bank of Australia’s 5% stake in TCNZ Australia through its Australian holding company, TCNZ Australia Investments.
At the same time, the bank’s two representatives on the TCNZA board have resigned.
Telecom paid the same nominal price for the stake as the bank did when it acquired the stake in August 2000 as part of telecommunications outsourcing arrangements between the two groups.
Mark Ratcliffe, Telecom’s chief information officer and group general manager ICT Services, says that when the bank took the stake it was not uncommon for customers to take an interest in their outsourcing partners to help ensure that both organisations were aligned around contract performance and delivery.
“However, we needed to hold board meetings and it was quite a lot of rigmarole for not much value,” he says. “This is by way of an administrative tidy-up.”