Digicel Group Holdings Ltd. (DGHL) has agreed to sell its subsidiary Digicel Pacific Ltd. (DPL), to a subsidiary of the Australian telecommunications company Telstra Corp. Ltd.
The deal values DPL at up to $1.85 billion, including a three-year, $250 million earn-out.
DPL operates in six markets in the South Pacific — Papua New Guinea, Fiji, Samoa, Vanuatu, Tonga and Nauru. Following the sale, Digicel will have no operational responsibility for the Pacific operations, but customary transition services will be provided by DGHL for a short period.
To facilitate a seamless transition, Denis O'Brien will join the board of directors of the newly formed holding company for DPL.
The transaction, which remains subject to customary government and regulatory approvals, is expected to reach completion in the first quarter of 2022.
