Vocus Communications Limited changes strategy

Vocus Communications Limited (ASX:VOC) remains a good bet for the future.

Tom Richardson

Tom is a holder of the CFA Society of the UK administered Investment Management Certificate (IMC) and has more than a decade's professional experience in the investment management industry in Australia and the UK. Tom now works as a writer and editor for TMF Australia and has two easy to remember rules of investing he likes to follow. Avoid overpaying for growth stocks and avoid paying at all for stocks that are cheap for a reason. Tom prefers growth investing over value investing and says it's not rocket science, just avoid overpaying for the best returns.

Published February 4, 2015 4:48 pm AEDT

Fibre-optic internet and data centre business Vocus Communications Limited (ASX: VOC) today announced it is to divest its New Zealand construction division and form a joint venture with Spark New Zealand as an alternative.

Under the joint venture, to be named Connect 8, Spark and Vocus will join forces to help build the internet network assets and infrastructure required to serve Kiwi businesses and other commercial internet users in the years ahead.

Vocus has been expanding its data centre capacity in Auckland and Christchurch and in September completed the around $108 million acquisition of FX Networks Limited in New Zealand to cement its position as a leading provider of internet services in the country.

Vocus is also expected to merge with rival Australian internet business Amcom Telecommunications Limited (ASX: AMM) in a deal that will catapult the combined businesses into the A-League of ASX-listed technology businesses.

Given Vocus' place at the top table of data centre, dark fibre and international internet activity across Australia and New Zealand it looks a good bet for the future.

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