selldown, page-61

With the acquisition of M2 on 22.2.2016, VOC issued 300 million shares at $7.53 each. This is a quite profitable venture, but purchased good over $2b.

Switch Utilities was acquired in December 2016. This was about NZ$11 m, and considered to be insignificant.

Over the last quarter of the year, VOC invested over $800 million nextgen, NW cable and Australia Singapore cable. With this, VOC only recognised $1.3 million of profit from October to December 2016. This venture has fibre assets costing $914 million.

People who installed these infrastructure were not necessarily the best people to run the operation. They may have done a good job in installation, but running it requires a completely different set of skills. Unless these 'pioneers' start listening, they may have to leave VOC. $1.3 million profit for last three months of 2016 weren't enough to pay interest. I tend to agree with VOC management team.

I believe VOC is strong and full of potential. If VOC recruited the right people to run the latter projects, there is no reason why SP could not go beyond $10 each.