Southern Cross Cable Network (Southern Cross) today confirmed an important milestone for the planned Southern Cross NEXT project (SX NEXT), with Southern Cross shareholders agreeing terms with Telstra to become one of the anchor customers of SX NEXT and a new shareholder in Southern Cross.
The agreed terms are subject to definitive documentation and regulatory approvals. If confirmed, Telstra is expected to become a 25 per cent shareholder in Southern Cross by investing in new shares, resulting in Spark New Zealand’s shareholding being diluted to approximately 37.5 per cent.
The funding arrangements for the SX NEXT project are yet to be finalised. Once these are confirmed, Spark will update the market as appropriate on any related financial impact.
A copy of the joint announcement by the Southern Cross shareholders and Telstra is below.