Telecom NZ buys back stake in TCNZA

SYDNEY - Telecom New Zealand Ltd today announced it had bought back the Commonwealth Bank of Australia's five per cent stake in TCNZ Australia Pty Limited (TCNZA) through its Australian holding company, TCNZ Australia Investments Pty Ltd.

At the same time, the bank's two representatives on the TCNZA board have resigned.

The Telecom Group paid the same nominal price for the stake as the bank did when it acquired the stake in August 2000 as part of telecommunications outsourcing arrangements made between the two groups at that time.

Mark Ratcliffe, Telecom NZ chief information officer and group general manager ICT Services, said when the bank took the stake, it was not uncommon for customers to take an interest in their outsourcing partners to help ensure that both organisations were aligned around contract performance and delivery.

"Four years on, TCNZA has built up a strong relationship with the Commonwealth Bank and has a deep understanding of the bank's business," Mr Ratcliffe said in a statement.

"In the circumstances, all involved felt it no longer necessary for the bank to have a stake in TCNZA."

- AAP