Vodafone NZ sells tower unit for $1.1bn
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Vodafone NZ sells tower unit for $1.1bn

Vodafone HQ 2.jpg

Vodafone New Zealand has confirmed it is selling its passive mobile tower assets for NZ$1.7 billion (US$1.1 billion).

The announcement was made by Vodafone and its partner Brookfield Asset Management.

The tower company will be acquired by global investors InfraRed Capital Partners and Northleaf Capital Partners, who will each have a 40% stake.

Infratil, which owns around 49.95% of Vodafone New Zealand, will reinvest the proceeds from the sale to acquire a 20% stake.

Jason Boyes, Infratil chief executive said: “We are delighted with this outcome, which highlights again why Vodafone is an excellent Infratil investment.

“We have unlocked a significant portion of the value of our original equity invested in Vodafone, whilst retaining that investment and a 20% stake in TowerCo.

“InfraRed Capital Partners and Northleaf Capital are high-calibre investors who share our vision for what the new TowerCo can deliver across New Zealand. The transaction is a win-win for Infratil shareholders.”

The business comprises 1,484 mobile towers and will be the largest New Zealand towers business, covering over 98% of the country’s population.

The terms of the agreement specify that the new TowerCo will enter into a 20-year agreement with Vodafone New Zealand providing the operator with access to both existing and new towers.

This includes a commitment from the TowerCo to build at least 390 additional sites over the next ten years.

Vodafone will continue to own the active parts of its network. This includes the radio access equipment and spectrum assets.

The deal is subject to approval from the Overseas Investment Office and is expected to be completed in Q4, 2022.

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