Optus purchases Queensland cable network for A$93 million

SYDNEY - Telecommunications company Optus announced today it had purchased Reef Networks Pty -- the owner of the fibre optic cable network stretching between Brisbane and Cairns in Queensland -- for an enterprise value of about A$93 ($102.16) million.

Optus said the acquisition would provide it with exclusive use of the cables' telecommunications transmission capacity until 2011.

Optus Networks managing director Bill Hope said the acquisition would save the company more than A$120 million in lease payments over the next six years.

"To ensure we retain our existing base and grow it into the future, we are expanding our products and infrastructure through targeted acquisitions as we continue to enter new markets and build scale," Mr Hope said in a statement.

Optus said that based on the audited financial statements as at June 30, 2004, Reef had property, plant and equipment of A$54 million and net deficiency of equity of A$6 million.

Reef Networks was formed in 1999.

In 2001, a 10-year deal was signed between Optus, Reef and Queensland Rail to provide access for the fibre network.

Optus has now acquired 100 per cent of Reef Networks, in a deal comprising approximately A$35 million in cash and the assumption of Reef's existing bond financing obligations of around A$58 million.

- NZPA