The New Zealand’s Overseas Investment Office announced the closing of a deal between network provider Spark and an institutional investment buyer. When completed, the $900 million purchase will release 70 percent of Spark NZ’s Towerco business to the Ontario Teachers’ Pension Plan Board, according to Reseller News.
Spark has said it intends to retain a 30 percent interest in Towerco. As the anchor tenant, Sparks NZ will continue to own the radio equipment and spectrum, and will help steer the future growth of the business. The arrangement includes a 15-year agreement between Sparks NZ and TowerCo that involves the maintenance of 1,263 current sites, as well as plans to build 670 new ones over the next 10 years.
Justine Smythe, Sparks NZ executive, noted that the transaction with the Ontario Teachers group presents “Direct shareholder returns and investment in future growth opportunities that will accelerate Spark’s transition from traditional telecommunications to higher growth digital services. The capital management policy will provide clarity on the proportion of proceeds allocated to each of these areas and the most effective means of returning proceeds to shareholders.”
Speaking on behalf of the Ontario Teachers’ Pension Plan Board, Senior Managing Director, Bruce Crane, said, “The acquisition of a 70 percent stake in TowerCo is an ideal fit for our growing global portfolio of high-quality infrastructure assets. This investment builds on our long track record of investing in superior businesses in New Zealand. It will draw on our deep experience investing in digital infrastructure businesses globally.”
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