PNG's back.

[Pippen94]

“Taxpayers will shoulder most of the financial risk in Telstra’s $US1.6 billion ($2.1 billion) purchase of Digicel Pacific, to ensure China does not take over the telecommunications network operating in six island countries neighbouring Australia.
The unprecedented deal involves Telstra contributing a modest $US270 million, with the government injecting more than $US1.33 billion ($1.8 billion) in debt and equity and providing other insurance to Australia’s largest telco.”



“The government will also insure Telstra for political risk on regulatory and tax issues, help with cash repatriation from Pacific islands and provide foreign exchange hedging for dividends and debt funding.”


“A source familiar with the deal expected that some of Australia’s foreign aid spending in PNG – estimated to reach almost $590 million in 2021-22 – would in future include a telecommunications component.”

Taxpayers bankroll Telstra’s $2.1b Digicel buy

Telstra will outlay just $US270 million in the deal to buy the strategically important South Pacific telco as part of its agreement with the federal government.

www.afr.com

There's PNG team future sponsor lol

 

[Wb1234]

Digicel’s investment in PNG has been generating significant returns: in the year to March 2019, PNG operations brought in revenue of more than US$340 million and made a contribution to group earnings (EBITDA) of $160.5 million. PNG’s contribution was worth 16.7% of total EBITDA and was the largest from a single market within the group. Revenue and profitability increased even as the company lost a half million mobile subscribers, which it says was the result of government policies requiring the registration of SIM cards.

The PNG operations have been making an increased contribution to Digicel’s profits, offsetting losses elsewhere in the group’s operations. More than 14% of the Digicel group’s revenue is counted in PNG kina. It’s regularly the largest or second-largest foreign currency in which the company deals.

Debt threatens Digicel’s Pacific dominance

The sprawling telecoms provider is deep in the red, and it might be the company’s PNG profits that help bail it out.

www.lowyinstitute.org

Yeh they are going to love a png nrl team