Paul Keating set for $30m payday after Telstra buys Boost Mobile

Former prime minister Paul Keating will pocket at least $30m after Telstra agreed to buy Boost Mobile in a bid to sell more budget prepaid phone plans amid a cost of living crunch.

Paul Keating is one of nine shareholders of Boost Mobile, which Telstra has acquired in a deal worth more than $100m. Picture: John Feder

Paul Keating is set to reap a payday of at least $30m after Telstra agreed to buy Boost Mobile to sell more budget prepaid plans amid a cost of living crunch.

The former prime minister is one of nine shareholders who own Boost, which Telstra has acquired in a deal worth more than $100m. Mr Keating is understood to have a near 30 per cent stake in Boost.

Australia’s biggest telco already has an affordable offshoot, Belong, but it doesn’t sell prepaid plans.

Telstra group executive in charge of consumer Brad Whitcomb said the Boost takeover – expected to be completed this month – would cement Telstra’s “multi-brand strategy”.

“Boost Mobile has been a fantastic partner of Telstra for 13 years and this acquisition cements just how much we value the Boost brand. We know Boost branded products are a fantastic option for those seeking more affordable mobile connectivity and we are committed to providing that choice in the market,” he said.

Boost Mobile chairman Peter Adderton said: “This acquisition of Boost is the natural evolution of the brand, and I am excited to see how the brand will continue to grow under Telstra’s ownership.

“The team at Boost are the best in the business and I wish them all well on the next part of Boost Mobile’s journey.”

Telstra said there will be no change for customers with Boost-branded prepaid plans as part of the acquisition and “most Boost Mobile employees will be integrated into Telstra as a stand-alone team focused on continuing to deliver the Boost branded experience”.