MyNetFone to buy Spark's international voice business

New Zealand telco Spark has inked an agreement to sell its international voice business to Australia's MyNetFone for NZ$22.4 million.

Spark said the sale was in line with its strategy to focus on its New Zealand operations. In February, Spark sold its 60 percent stake in Telecom Cook Islands to an international consortium.

Spark will, however, retain its international data business, a spokesman said.

The international voice business, which is part of Telecom New Zealand International (TNZI), has forecast earnings before interest, tax, depreciation, and amortisation (EBITDA) of approximately NZ$3 million to NZ$4 million a year.

TNZI sells digital, voice, data, and mobile services, has operations in six countries, and carries over 2.8 billion minutes annually.

Spark said the non-US aspects of the transaction are expected to be completed during April, with the US aspects subject to US government approvals.

MyNetFone is a provider of VoIP broadband phone and IP network services, and is listed on the Australian Securities Exchange.

MyNetFone said the acquisition consisted of a carrier-grade voice network over Europe, North America, Asia, and Oceania, the TNZI brand, custom-built international voice trading software, and 220 carrier relationships and interconnect agreements.

MyNetFone chief executive Rene Sugo said the buy transforms the company into a significant player in the global voice market. The company said it expects the business to generate between AU$90 million and AU$100 million in its 2016 financial year.