Infratil to acquire 80% stake in Console Connect for US$160m

Infratil to acquire 80% stake in Console Connect for US$160m

Jason Boyes, CEO of Infratil.jpg

Infratil, a New Zealand-based infrastructure investment company, has entered into a conditional agreement with HKT, a Hong-Kong telco, for an 80% stake in Console Connect for US$160 million.

In addition to an equity stake, upon completion of the transaction, both Infratil and HKT will jointly invest up to US$295 million over a 2-year to enable Console Connect’s strategic growth.

With Infratil to hold an approximate 80% stake in Console Connect, and HKT to hold the remaining interest, Infratil will have governance rights consistent with its interest, working alongside HKT.

“Console Connect is a leading global software-defined interconnection platform, and this acquisition is a continuation of our conviction in the tailwinds of the digital infrastructure sector. It 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 Jason Boyes, CEO of Infratil.

“Our partners in HKT have built a highly attractive software-defined interconnection platform over the past several years and we look forward to investing alongside them to accelerate the growth of Console Connect

This investment will see the two establish a joint sales and marketing function implementing an HKT-supported approach to offer fibre infrastructure and IP access to enterprise & wholesale customers.

It will also fund new subsea cable systems and network development to increase Console Connect’s network capacity, resiliency and scale. As well as to invest in the R&D of Console Connect’s technology platform.

“Over the past few years, the team at Console Connect has successfully developed it into a world leading platform. We are pleased to have found a like-minded partner in Infratil who is excited about the potential opportunities to continue growing Console Connect," added Susanna Hui, group managing director at HKT.

"Our partnership around Console Connect, investing in the platform as a standalone operation, will deliver material benefits to the business as well as to HKT shareholders through unlocking value and further developing economies of scale.”

The deal is subject to closing conditions including foreign investment regulatory approvals and merger approvals in Australia, France, Germany, Greece, Hong Kong, Italy, Japan, Mozambique, the Netherlands, Singapore, South Africa, and the US.

Once this closing criteria has been met, it is expected that the deal closes by Q3 of 2024.

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