Telecom shareholders approve demerger

27.10.2011
New Zealand Telecom (ASX: TEL) shareholders have overwhelmingly voted in favour of demerging its infrastructure business Chorus to allow the company to participate in the country's Ultra-fast Broadband Network (UFB) project.

The vote echoes which also resulted in overwhelming support for the structural separation of the company to allow it to participate in the National Broadband Network (NBN).

According to Telecom, some 99.8 per cent of votes cast were in favour of the demerger. Some 99 per cent of Telstra shareholders approved its separation.

The approval was a near-certainty for Telecom, which in August took the step of announcing the members

During the month Telecom also confirmed its chief executive officer, Paul Reynolds, following the demerger process and rebranding as New Telecom.