New Zealand's specialist mobile tower infrastructure company, Connexa, has completed the acquisition of the passive mobile tower assets of mobile operator 2degrees. The transaction, valued at NZD 1,076 million, solidifies Connexa's position as the country's leading mobile tower infrastructure network.
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Expansion of Connexa's Tower Network
Announced in December 2022, the acquisition was completed with the support of Ontario Teachers' Pension Plan (Ontario Teachers'), Connexa's largest shareholder. The assets acquired by Connexa consist of 1,124 mobile tower sites across New Zealand, including upcoming in-flight sites scheduled for delivery by 2degrees in 2023. This strategic addition to Connexa's portfolio brings their tower network to a total of more than 2,350 towers throughout New Zealand.
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Ontario Teachers' Support and Increased Shareholding
Connexa's formation in July 2022 involved the acquisition of a 70 percent stake in Spark New Zealand's passive mobile tower infrastructure assets, with Ontario Teachers' as the acquiring party and Spark retaining 30 percent. With this acquisition of 2degrees' tower assets, Ontario Teachers' now holds approximately 83 percent of Connexa's share, while Spark's share dilutes to around 17 percent.
Connexa highlighted its vision to become New Zealand's most comprehensive, efficient, and sustainable tower network.
Ontario Teachers' welcomed the transaction's completion, stating that it establishes Connexa as the leading mobile tower infrastructure network in New Zealand. Ontario Teachers' expressed its dedication to supporting Connexa as it expands its digital infrastructure platform to meet the country's growing mobile and data demand.
Also Read: Spark to Close Its 3G Network in New Zealand in Late 2025
Long-Term Agreement and Commitment with 2degrees
According to the statement, under the terms of the deal, 2degrees has entered into a 20 year-agreement with Connexa (plus rights of renewal) to secure access to existing and new towers. This includes an additional tower build and co-location commitment of 450 sites for 2degrees over the next 10 years.
2degrees said that the divestment of their passive tower assets aligns with the company's strategy in New Zealand, allowing them to invest in innovative solutions, services, and customer experiences.
Also Read: Spark New Zealand to Invest in Data Centres and 5G Over Three Years
Forward Build Program for Spark's Mobile Services
Connexa's forward build for 2degrees is in addition to the country's largest forward-committed new site build programme by Connexa for Spark. Connexa has committed to building a further 670 sites over the next ten years to support Spark's mobile services.
Connexa says the completion of the transaction follows regulatory approvals from the Commerce Commission and the Overseas Investment Office.
