Telstra’s A$2.1. Billion Acquisition of Digicel Pacific Limited

Davis Polk advised Digicel Group Holdings Limited on the deal. Gilbert + Tobin assisted Telstra.

The Australian government has chipped in US$1.33 billion (A$1.8 billion) to assist in Telstra’s acquisition of telecommunications company Digicel Pacific for US$1.6 billion (A$2.1 billion) in total.

The deal sees Telstra contribute US$270 million (A$361 million) to the government’s contribution with the Australian telco to own 100 per cent of the ordinary equity and is expected to close by April at the latest.

The transaction, which remains subject to customary government and regulatory approvals, is expected to be completed in the first quarter of 2022.

Digicel is an international mobile phone network and home entertainment provider operating in over 33 markets across the Caribbean, Central America and Oceania regions. DPL operates in six markets in the South Pacific including Papua New Guinea, Fiji, Samoa, Vanuatu, Tonga and Nauru.

Telstra is a leading global telecommunications and technology company with a proudly Australian heritage.

The Davis Polk corporate team included partner Daniel Brass (Picture) and associates Rachel Schlosser, Matthew J. Cowcher and Dylan Major. Partner Pritesh P. Shah and associate Samantha Lefland provided intellectual property advice. Partner Michael Mollerus and associate Yixuan Long provided tax advice. Partner Hilary Dengel and associate Deborah K. Klein provided finance advice.

The G+T Corporate team consisted of Bill Spain, Susannah Macknay, Maria Eger, James Soussa, Jerone Wills. Head of Banking + Projects, in conjunction with special counsel Rachel Jones, advised on the financing aspects of the deal, supported by Lisa Hamilton. Peter Waters advised on regulatory aspects of the deal, with a team including special counsel Tanya Macdonald and lawyers Erin Jardine, James Anthony, Chris Goutama and Sunny Lee. Other specialists across the firm included Tax partner Muhunthan Kanagaratnam, Technology partner Michael Caplan and lawyer Clare Beardall, and IP special counsel Anna Smyth and lawyer Candy Welsh.

Involved fees earner: Daniel Brass – Davis Polk & Wardwell; Matthew Cowcher – Davis Polk & Wardwell; Hilary Dengel – Davis Polk & Wardwell; Deborah Klein – Davis Polk & Wardwell; Samantha Lefland – Davis Polk & Wardwell; Yixuan Long – Davis Polk & Wardwell; Dylan Major – Davis Polk & Wardwell; Michael Mollerus – Davis Polk & Wardwell; Rachel Schlosser – Davis Polk & Wardwell; Pritesh P. Shah – Davis Polk & Wardwell; James Anthony – Gilbert + Tobin; Clare Beardall – Gilbert + Tobin; Michael Caplan – Gilbert + Tobin; Maria Eger – Gilbert + Tobin; Christopher Goutama – Gilbert + Tobin; Lisa Hamilton – Gilbert + Tobin; Erin Jardine – Gilbert + Tobin; Rachel Jones – Gilbert + Tobin; Muhunthan Kanagaratnam – Gilbert + Tobin; Sunny Lee – Gilbert + Tobin; Tanya Macdonald – Gilbert + Tobin; Susannah Macknay – Gilbert + Tobin; John Schembri – Gilbert + Tobin; Anna Smyth – Gilbert + Tobin; James Soussa – Gilbert + Tobin; Bill Spain – Gilbert + Tobin; Peter Waters – Gilbert + Tobin; Candy Welsh – Gilbert + Tobin;

Law Firms: Davis Polk & Wardwell; Gilbert + Tobin;

Clients: Telstra Corp.;