Spark New Zealand to sell stake in mobile towers business to Canada's CDPQ for $182 mln (updated)

AiRWA

11/12/2024 20:06

(Updates with further details on deal, background)
       Dec 12 (Reuters) - Spark New Zealand  SPK.NZ  will sell
its remaining 17% stake in mobile towers firm Connexa for NZ$314
million ($181.77 million) to Canadian investment fund Caisse de
Depot et Placement du Quebec (CDPQ), the telecom company said on
Thursday.
    Spark had announced in October its plans to divest its stake
in Connexa, at a time when media speculation had emerged the
Canadian pension fund, Ontario Teachers' Pension Plan (OTPP) is
looking to offload its shareholding in Connexa as well.
    Spark added OTPP, as part of the agreement, will also sell
33% of its 83% shareholding to CDPQ, resulting in both parties,
CDPQ and OTPP, having a 50% co-controlling interest in Connexa
post-transaction.
    The sale is expected to generate a gain of about NZ$70
million in reported EBITDAI for Spark upon completion, the
company said.
    Under the terms of the deal, Spark will continue to be a key
customer of Connexa and will maintain control over the
development of its mobile network, it added.
    
    
($1 = 1.7274 New Zealand dollars)

 (Reporting by Adwitiya Srivastava in Bengaluru; Editing by
Krishna Chandra Eluri)
 ((Adwitiya.Srivastava@thomsonreuters.com;))