NZ's Chorus says won't pay dividends until June 2015 or later

WELLINGTON, July 25 Thu Jul 24, 2014 5:00pm EDT

WELLINGTON, July 25 (Reuters) - New Zealand telecommunications network operator Chorus Ltd on Friday said it would not pay dividends to shareholders until June 2015 or later as the company increases it bank financing facilities.

The announcement is related to regulator plans to control prices Chorus can charge Internet service providers for access to its network.

"Chorus has agreed that no dividends will be paid until the later of the conclusion of the Commerce Commission's final pricing principle review processes or 30 June 2015," it said in a statement.

Chorus declared a dividend of 15.5 cents a share last year, but did not pay one in the first half of this year. (Reporting by Naomi Tajitsu; Editing by Robin Pomeroy)