NZ's Infratil to buy majority stake in Console Connect from HKT Trust for $160 mln (updated)

HKT Trust and HKT

09/07/2023 22:13

(Adds background in paragraph 2, quote in paragraph 3, details
on deal in paragraph 4-7)
       July 10 (Reuters) - New Zealand's infrastructure
investor Infratil  IFT.NZ  said on Monday it will acquire an 80%
interest in interconnection platform Console Connect from
Hong-Kong based telecommunications firm HKT Trust and HKT Ltd
(HKT)  6823.HK  for $160 million. 
    The company, which is in the midst of strengthening its
digital infrastructure portfolio, had also earlier disclosed
plans to acquire a 49.95% stake in One New Zealand - the
country's second-biggest mobile market operator by market share-
in a deal valued at $1.1 billion.
        "It (the acquisition) enables us to invest in building a
next-generation platform to support underlying growth in the
demand for digital infrastructure and global connectivity
solutions by enterprise and wholesale users," said Infratil CEO,
Jason Boyes. 
  
        Infratil will also execute a partnership with HKT, in
which both companies will jointly invest up to $295 million over
the course of two years, the company said in a statement. 
  
        Funds from the investment will be diverted to accelerate
Console Connect's sales and marketing, new sub-sea cable and
network expansions as well as the platform's research and
development requirements, it added. 
  
        Through the initial investment, Infratil will own
between 60-80% of Console Connect, with HKT holding the
remainder.  
  
        The company expects the acquisition to complete by the
third-quarter of 2024 assuming all regulatory approvals are
granted by then, it said.  
  

 (Reporting by Roushni Nair in Bengaluru; editing by Diane
Craft)
 ((Roushni.Nair@thomsonreuters.com;))