Taxpayers will shoulder most of the financial risk in Telstra’s $US1.6 billion ($2.1 billion) purchase of Digicel Pacific, to ensure China does not take over the telecommunications network operating in six island countries neighbouring Australia.
The unprecedented deal involves Telstra contributing a modest $US270 million, with the government injecting more than $US1.33 billion ($1.8 billion) in debt and equity and providing other insurance to Australia’s largest telco.
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Lucas Baird is a journalist based in The Australian Financial Review's Sydney office. Connect with Lucas on Twitter. Email Lucas at lucas.baird@afr.com
John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
