Vodafone cools on stockmarket listing
Expectations that Vodafone might soon float a stake in its New Zealand business have been dialled back by Vodafone New Zealand chief executive Russell Stanners.
The British-based telecommunications giant confirmed speculation in November that it might sell a stake in its New Zealand business this year.
It was understood to have had preliminary discussions with fund managers to gauge the appetite for an initial public offering (IPO).
Stanners said it would be fair to say the company has been investigating a sharemarket listing.
‘‘But I don’t see any great drive to do it, particularly given where we see the market – that is where we are at.
‘‘We have had a good look and on balance we are probably quite happy with where we are at the moment,’’ he said.
‘‘We now know the market and when we think it is right we might do something, but it is not something you are are going to see in a week or two.’’
Stanners confirmed that meant nothing would happen within ‘‘months’’. He noted the stockmarket had experienced a wobble this year, although the NZX did subsequently climb back up to a record high two weeks ago.
If Vodafone was disappointed by market soundings of how much a stake in the business might fetch, it might not be the only company to face such a let-down.
Australian media reports have suggested Trustpower might be leading the bidding to buy New Zealand’s fourth largest telecommunications company, Vocus New Zealand, with an offer of about A$250 million (NZ$270 million) – which is about the half the sum Vocus was rumoured to be seeking.
Stanners said Vodafone would have been very interested in acquiring Vocus NZ, which owns the Slingshot and Orcon internet brands, but had been told by advisers it was unlikely to get Commerce Commission clearance.
Spark managing director Simon Moutter all but ruled out Spark bidding for Vocus NZ, for the same reasons.
Stanners indicated Vodafone’s current thinking on a New Zealand float could be taken as a sign of its commitment to the local market.
‘‘People were asking me if this means Vodafone wants to sell out. Well, clearly they don’t want to, because we haven’t.’’
Stanners cleared the air on the IPO on Thursday, ahead of his first appearance at a select committee meeting in his 13 years heading Vodafone NZ. He is making a submission on a sweeping proposed overhaul of the Telecommunications Act.
Vodafone has expressed concern that network company Chorus might morph into ‘‘old Telecom’’ as a result of a bill before Parliament that would loosen restrictions on the areas of the market in which Chorus could compete.
The select committee heard submissions on the legislation at the end of an eventful week in the internet and broadcasting industries, which also saw Sky Television miss out on broadcasting rights to the 2019 Rugby World Cup.
Stanners said the development proved the Commerce Commission was wrong to reject Vodafone NZ’s proposed merger with Sky last year.
‘‘One of the things they said was Sky would always have an enduring hold on all the best content. Well, less than 12 months later, a premium flagship bit of content has gone somewhere else.’’
But he indicated Vodafone was not reassessing its marketing partnership with Sky. ‘‘For us it is still a very valuable commercial partnership.’’