TELSTRA ANSWERS CALLS FROM VITA GROUP WITH NEW EXPANSION DEAL

TELSTRA ANSWERS CALLS FROM VITA GROUP WITH NEW EXPANSION DEAL

Vita Group (ASX: VTG), has settled negotiations with Telstra (ASX: TLS) after signing a new remuneration and commercial agreement.

The agreement gives approval for the Vita to operate an additional five Telstra branded retail stores on top of the existing 105 it already manages, which is intended to provide long-term benefits for both companies.

Vita Group has agreed to let go of seven to eight per cent of retail remuneration of FY20, however the figure may be partly offset with the possible expansion of a further 115 stores, as the company has extended its tenure until June 2023.

The deal follows numerous discussions between the parties, and in May this year Telstra was reported to have been considering taking back 11 stores from the Vita Group, a statement the company later clarified was for 'discussion only'.

Vita Group chief executive officer, Maxine Horne (pictured) says the company is pleased with the conclusion and the agreement is a representation of the strategic relationship between Vita Group and Telstra.

"We are very pleased with this outcome which reflects the confidence Telstra continues to place in Vita to deliver results," she said.

"With this key milestone achieved, the Vita team are well positioned to deliver long-term value to our customers, our team members and of course Telstra and our shareholders."

Following this morning's announcement, Vita Group's shares have shot up by 20.4 per cent to $1.50 at 1.45pm AEST.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Board exodus gathers pace at The Star after O’Neill resigns as chairman

Board exodus gathers pace at The Star after O’Neill resigns as chairman

The Star Entertainment Group (ASX: SGR) is now on the hunt for a ne...

Blackstone waits on gaming authorities as Crown shareholders approve $8.9b buyout

Blackstone waits on gaming authorities as Crown shareholders approve $8.9b buyout

Shareholders of Crown Resorts (ASX: CWN) have voted in favour of th...

Carsales.com founders sell Melbourne office development for $60.25m

Carsales.com founders sell Melbourne office development for $60.25m

A Singapore-listed property trust managed by Frasers Property (SGX:...

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths (ASX: WOW) is looking to enhance its online marketplace ...