Telstra yesterday announced plans to acquire 100 per cent of the shares in Australian IT services company, KAZ Group Limited.
The plan has been endorsed by KAZ directors and will involve Telstra paying 40 cents per share in cash via a Scheme of Arrangement.
The offer price values KAZ equity (including share options) at $333 million.
The transaction is subject to a number of conditions including approval from KAZ shareholders and the court as well as material adverse change and other common deal closure provisions.
It is expected that the scheme documents will be sent to shareholders in late May and that shareholders will have the opportunity to vote on the scheme in late June.
A KAZ shareholder information line has been established to address KAZ shareholder inquiries. The number is 1800 040 842.
Telstra chief executive Dr Ziggy Switkowksi said the transaction positioned Telstra well in the managed services and information and communications technology (ICT) markets, by expanding Telstra's IT services capability alongside its core strength in telecommunications.
"For Telstra, the transaction delivers increased capability in the ICT services market, a key driver of future growth for Telstra's business and government division, by enabling us to serve an increasing number of customers who are looking to telecommunications companies as partners who deliver and manage their complex IT and business process outsourcing (BPO) services requirements," he said.
"The combination of KAZ and Telstra's current managed services activities will create a profitable business unit with initial revenues approaching $1 billion per year."