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Telstra has agreed to buy the largest telco in the Pacific using $1.8billion of taxpayer cash to prevent it being owned by China.
The $2.1billion sale of Digicel Pacific - which operates in Papua New Guinea, Tonga, Fiji, Nauru, Samoa and Vanuatu - will go through next year.
Most of the cost is being covered by the Government through Export Finance Australia with Telstra tipping in the rest.
Telstra has agreed to buy the largest telco in the Pacific using $1.8billion of taxpayer cash to prevent it being owned by China. Pictured: Scott Morrison on Monday
State-owned China Mobile had expressed interest in buying Digicel but the Australian Government did not want the strategic asset to fall into the hands of the Chinese Communist Party.
In a joint statement, Foreign Minister Marise Payne, Trade Minister Dan Tehan and International Development and Pacific Minister Zed Seselja said the Government expects to see a long term return from the deal.
'The acquisition also reflects the government's commitment... to support the development of secure and reliable infrastructure in the region,' the ministers said on Monday.
Irish billionaire Denis O'Brien, who started the business, will sit on the company's new board.
'It's a tribute to Australia's commitment to the Pacific,' said Senator James
