2degrees listing halted amid suspected Orcon merger

2degrees listing halted amid suspected Orcon merger
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The float and listing of telecommunications company 2degrees has been put on hold amid speculation it may be merged with local broadband operator Orcon.

The Australian Financial Review has reported the owners of 2degrees and the New Zealand arm of Vocus, now renamed Orcon, are talking at putting the two businesses together.

A spokesperson for 2degrees confirmed preparations for an initial public offering (IPO) have been paused, but offered no other information.

Its US owner, the Canadian listed Trilogy International, has been put into a trading halt pending an announcement.

Last week 2degrees named a board of directors for a locally-listed company.

Orcon is owned by a fund run by investment company Macquarie, and has long been slated for a listing on the NZX as part of a restructuring of its former owners Vocus.

The two companies have separately been holding roadshows with investment funds about potential share floats and listing on the NZX.

A merger of the two telcos would bring together 2degrees mobile services with the broadband operations of Orcon, which also includes Slingshot, Stuff Fibre, and Flip, creating a sizeable third player in the local market after Spark and Vodafone.