Thursday October 19, 2017   Last updated 16:54PM
max
°
min
°

On Air Now | Radio Waatea

03:00pm - 06:00pm
Spectrum trust airbrushes shrinking shareholding

Share to Email
Share to RSS
Share to Print

Spectrum trust airbrushes shrinking shareholding
By Waatea news editor Adam Gifford

The Maori spectrum trust Te Huarahi Tika has lost most of its stake in mobile phone company Two Degrees ... but it is trying to paint the setback as a victory for good governance.

Te Huaraki Tika was set up in 2000 by the then-Labour Government to take the heat out of Maori spectrum claims.

The trust, which included a mix of crown and Maori appointees chaired by former All Black Bill Osborne, was given $5 million and the right to buy a block of 3G mobile phone spectrum at a discount.

It took more than seven years and regulatory change before it could find partners to invest in a network.

Building the network came with a half billion dollar price tag.

So its shareholding would not be diluted by the new capital coming into the company, the trust’s commercial subsidiary Hautaki borrowed from major shareholder Trilogy International to buy new shares as they were issued.

But with no dividends or other revenue coming in, and no new Maori organisations willing to buy its shares, Hautaki couldn’t repay the loan.

That means it had to transfer shares to Trilogy for the loan and interest payments.

In March 2013 it owned a peak 20,151,966 shares or 5.07 percent of Two Degrees.

It also held 20,236,901 shares in trust for central North Island land incorporations Tuaropaki and Wairarapa Moana, who has taken up an earlier offer to invest in the company.

A transfer notice filed with the Companies Office last month showed Hautaki now has a total of 28728278 shares or just over 7 percent of the company.

Trustee Karaitiana Taiuru says only 8,491,377 of these belong to Hautaki, with Tuaropaki having 18,882,929 shares and Wairarapa Moana 1,353,972.

The way Hautaki chair Mavis Mullins described the deal in a press release, her organisation has retired all debt and retains a $15 million cornerstone shareholding on behalf of Maori, including the investments of Tuaropaki and Wairarapa Moana.

Meanwhile, Te Haurahi Tika trustee Anthony Royal, who was a director of both Hautaki and Two Degrees, has resigned.

Trustee Daphne Luke says he made a huge contribution, including helping Two Degrees develop its te reo smartphone, working with AUT University to create scholarships and cadetships for Maori within the company, and advocating Maori involvement in spectrum allocation policy.

While Te Huarahi Tika Trust has 3G spectrum it allows Two Degrees to lease on its behalf, it was unable to secure for Maori any of the 700MHz spectrum the company needs for when it builds a 4G data network.

Mr Royal is also the chair of Nga Pu Waea, the government-appointed National Maori Broadband Working Group, and a member of the expert panel advising Te Mangai Paho how to operate the new $30 million Maori ICT Development Fund.

Trustee Toa Greening, a south Auckland IT engineer, will replace him as an interim director on Hautaki.

Te Huarahi Tika Trust and its electoral college will now try to recruit new trustees.

 

Copyright © 2015, UMA Broadcasting Ltd: www.waateanews.com

TWWoA RadioWeb 300x150-Waatea
Rheumatic Fever
2017 Te Wero
E-Tangata-151017
Waatea TV
 
Irirangi Waatea Kaiwhakahaere Bernie O'Donnell, Te Ati Awa
Huhana Lyndon Nominated for Whangarei Byelection
Nominations for the byelection in Whangarei's Denby Ward have been received with 2 nominations.
John Fenwick Chair of Waikite
John Fenwick's links to the Waikite Rugby and Sports Club stretch back to the 1970's when as a 10-year-old he'd help his dad, the then treasurer, count the previous night's bar takings and raffle money.
Phil Anderson Customers Manager Callaghan Innovations
A full house turned out at the Succeed in a Changing World event hosted by Callaghan Innovation and Activate Tairawhiti and designed to inspire innovation.
Glen Katu Maraeroa CE
A South Waikato ginseng producer is ready to approach potential investors to increase its production and exports with the help of funding of up to $40,000 from the Ministry for Primary Industries (MPI).
Boyd Broughton from ASH
An updated version of Auckland Council's 2013 Smokefree Policy was presented to the Environment and Community Committee on 17 October and the committee adopted the amended policy and implementation plan.
Mana Party Leader Hone Harawira
Breakfast Host: Dale Husband
Labour Leader Jacinda Ardern
Winston Peters decides the government this afternoon.
3 Wiremu Huta Martin | Te Kupenga Paa
Hei teenei wiki mutunga nei ka whakamauhara taatou i te pakanga nui i tuu ki te paa o Te Kupenga. Kei a Wiremu Huta Martin te roanga o ngaa whakaritenga mo teenei kaupapa
Don't put the blame solely on Winston !
JOHN TAMIHERE: I can recall carrying a cardboard cutout picture of Winston Peters around the Otara Flea Market in 1999 pretending to debate him. Why? Because he wouldn’t enter into a debate with me.
Metiria Turei vs Jian Yang - Compare the media values at work
MARTYN 'BOMBER' BRADBURY: There are times when the mainstream media coverage of two events manages to say more about the real bias at work within the media than the news worthiness of their focus.
How do Maori respond to the next wave of colonisation?
MARTYN 'BOMBER' BRADBURY: Statistics released by Statistics NZ show that the Asian-NZ population will overtake Māori by 2038...
0
TMP2
p waateap listenp podcastp rssp facebookp twittercontactus

Submit


Glossary

Subscribe

To receive regular updates from Waatea News.