WELLINGTON, Nov 23 (Reuters) - Shares of newly structured New Zealand phone company Telecom Corp. debuted at NZ$1.97 on Wednesday while its spinoff network unit Chorus started at NZ$3.03 in a slightly firmer market.
Telecom, once New Zealand’s largest listed company, has split into a retail operation, and a fixed line operator, as a condition of winning the contract to roll out most of the New Zealand government-sponsored ultrafast broadband network.
Telecom shareholders were issued one Chorus share for every five Telecom shares held. Chorus will trade on a deferred settlement basis until the demerger becomes official on Nov 30.
Both stocks started trading in Australia on Monday, with Telecom closing at A$1.49 on Tuesday and Chorus at A$2.26.
Chorus will build around 75 percent of the ultrafast broadband network, which will see the government invest NZ$929 million in it through a mixture of debt and equity as the broadband network is built.
Telecom, a former state-owned company, will retain ownership of its mobile phone network but buy fixed-line services, provided in the current copper-wire domestic network, from Chorus.
Reporting by Mantik Kusjanto