Former prime minister Paul Keating’s huge payday as Telstra buys Boost Mobile

Former prime minister Paul Keating is expecting a huge payday as Telstra acquires Boost Mobile, the company he co-founded in 2000.

Telecommunications giant Telstra will acquire Boost Mobile for almost $140 million – giving former prime minister Paul Keating a huge payday.

Mr Keating co-founded the prepaid mobile phone business with Peter Adderton in 2000 and will now pocket at least $40 million from the sale, according to the Australian Financial Review.

It is understood Mr Keating, who was Australia’s 24th prime minister between 1991 and 1996, has almost a 30 per cent stake in the company.

He told AFR he was “reasonable” at his own ventures.

“I’ve got a chunk of a successful business which I co-founded and funded myself,” Mr Keating said.

Paul Keating will reportedly make at least $40 million from the sale of Boost Mobile to Telstra. Picture: John Feder/The Australian.

Boost Mobile already uses the Telstra network as it doesn’t have its own.

The acquisition is intended to help Telstra sell to customers who are looking for cheaper options amid the high cost of living.

Brad Whitcomb, the Telstra group executive in charge of consumer, said Boost branded products are “a fantastic option for those seeking more affordable mobile connectivity,” as per The Australian.

While Boost Mobile chairman and co-founder Mr Adderton said the acquisition was a “natural evolution of the brand”.

Telstra hopes to use the Boost Mobile brand to sell to customers looking for cheaper options amid the cost of living crunch. Picture: NCA NewsWire / Luis Enrique Ascui

The newspaper reported that most Boost Mobile employees were expected to be integrated into Telstra as a stand-alone team, and there would be no change for customers with Boost-branded prepaid plans.

Boost Mobile chief executive Jason Haynes told AFR he would leave the brand after it is integrated into Telstra over the next few months.

Boost Mobile offers prepaid sims with 12 month, 28 day and 7 day plans, meaning customers are clear on what they are spending.

Originally published as Former prime minister Paul Keating’s huge payday as Telstra buys Boost Mobile