Telecom NZ puts AAPT up for sale October 21, 2013 - 1:15PM Australian telecommunications company AAPT has been put up for auction by its parent company Telecom New Zealand, the Australian Financial Review is reporting on its website. Goldman Sachs is understood to be managing the deal, which could be worth over $400 million, the AFR writes. AAPT owns a significant fibre optic cable network that links various cities and commercial hubs throughout Australia. "This includes 11,000km of interstate fibre, its own data centres in major capital cities, fibre access to 1600 premises," Telecom New Zealand said in its 2013 annual report. AAPT has access to DSL coverage in over 400 exchanges focused on the major Australian cities and large metropolitan areas. But the business has also experienced a steady decline in earnings before interest, taxation, depreciation and amortisation. It reported EBITDA of $57 million in financial year 2013, which was 14.9 lower than the $47 million it reported the year before. Nextgen Networks was also a major owner of intercity fibre optic cabling with an EBITDA of $125 million. 70 per cent of it was sold to the Ontario Teacher's Pension Plan in February in a deal that valued the company at $885 million. If AAPT is sold at the same EBITDA multiple the deal could be worth $403.5 million. But sources close to the deal are sceptical because of the company's sliding earnings and questionable future and say its value could be closer to between $250 million and $300 million. The sale of AAPT has long been mooted as an option for Telecom New Zealand, which has experienced falling profits as it completes a restructuring under chief executive Simon Moutter. Click here for more