SP Telemedia to Acquire 30% of B Digital in Strategic Alliance

Strategic Insights -

SP Telemedia, an Australian telecommunications company, has entered into a strategic alliance with B Digital, a voice carriage service provider. As part of the deal, SP Telemedia will acquire 30% of B Digital by issuing 240 million fully paid shares and paying $A13.75 million in cash. The alliance will enable SP Telemedia to introduce new products to its customers, particularly in the mobile voice market, and will position B Digital to take advantage of future opportunities in the residential Voice over IP business.

Key Takeaways:

  • SP Telemedia will acquire 30% of B Digital through the issue of 240 million fully paid shares and a payment of $A13.75 million in cash.
  • The strategic alliance will enable SP Telemedia to introduce new products to its customers, particularly in the mobile voice market.
  • B Digital will acquire Kooee Communications, a resale business owned by SP Telemedia, and a 50% investment in Comindico, an IP network company.
  • The alliance will position B Digital to take advantage of future opportunities in the residential Voice over IP business.
  • The deal is subject to various conditions, including completion of due diligence by B Digital, an independent expert's report, and approval by B Digital shareholders.
  • SP Telemedia chairman Rob Millner stated that the alliance will enable the company to introduce new products to its customers.
  • B Digital managing director Peter George said that the alliance will position the company for future opportunities in the residential Voice over IP business.

Statistics:

  • SP Telemedia will issue 240 million fully paid shares to acquire 30% of B Digital.
  • The cash payment for the acquisition is $A13.75 million ($US10.84 million).
  • B Digital will acquire Kooee Communications, a resale business owned by SP Telemedia.
  • B Digital will buy a 50% investment in Comindico, an IP network company.

Sources:

  • Asia Pulse, "SP Telemedia to Take 30% Stake in B Digital" (Nov 29)
  • ASX, "SP Telemedia Limited (SOT) - Notice of allotment of securities"
  • B Digital, "B Digital Enters into Strategic Alliance with SP Telemedia"
  • SP Telemedia, "SP Telemedia Enters into Strategic Alliance with B Digital"