Hydro Tasmania is selling its telecommunications business to Transend Networks.
The sale for $14.5 million has been approved by the boards of both Hydro Tasmania and Transend and affected staff are expected to move to Transend by 1 November 2008. The deal includes a long-term agreement for these telecommunications services to be provided back to Hydro Tasmania by Transend.
The Hydro Tasmania Telecommunications Services Group provides specialist high reliability telecommunications services to Hydro Tasmania, Transend, Aurora Energy, Air Services Australia and the State Government for mobile radio.
Hydro Tasmania’s CEO, Vince Hawksworth, said that Transend has sent offers of employment to the 31 staff currently working in the Telecommunications Services Group. The sale also includes plant and equipment and existing telecommunications contracts.
“The sale to Transend – which owns and operates the State’s electricity transmission system – has been done in full consultation with staff and unions and will see employees’ rights and conditions of employment preserved,” Mr Hawksworth said.
“I appreciate our people’s contribution to the business over many years and their patience and professionalism during what has been a long and complex process. The process has progressed smoothly without any disputes.
“Reliable telecommunications is very important to our business, and Transend is well placed to provide this service. Hydro Tasmania will focus its resources on core asset maintenance and growth opportunities,” Mr Hawksworth said.
Transend’s Managing Director, Richard Bevan, said it was appropriate that the telecommunications services business resides with Transend.
“Transend’s vision is to be a leader in developing and maintaining sustainable networks,” Mr Bevan said.
“As such, the Telecommunications Services Group fits into this category and can be considered as core business for Transend.
“Transend has a growing need for telecommunications services and this acquisition will enable us to grow this part of our business in a manner that is complementary to our existing fibre optic communication assets.
“We are confident that we will apply the same high standards to the telecommunications services as Hydro Tasmania has previously enjoyed.
“We look forward to welcoming the 31 staff of the telecommunications business into the Transend team,” he said.