Spark New Zealand's subsidiary, Connexa, has received clearance from the Commerce Commission to acquire the passive mobile telecommunications tower assets of 2degrees Mobile and 2degrees Networks. The acquisition, announced by Spark on December 15, 2022, marks a significant development in the telecom industry of New Zealand.
Also Read: Spark New Zealand to Invest in Data Centres and 5G Over Three Years
Spark's stake in Connexa diluted
Connexa, in which Spark holds a stake, will take over 2degrees' tower assets from the current owners, Macquarie Asset Management and Aware Super. According to the statement, Spark will not contribute to the acquisition, which will dilute its shareholding in Connexa from 30% to approximately 17% upon transaction completion.
Also Read: 2degrees and Lynk Announce Satellite-To-Cell Trial
Ontario Teachers' Pension Plan to fund the deal
Connexa is currently owned by Ontario Teachers' Pension Plan Board (OTPP) as a majority shareholder (70%), and Spark New Zealand retains a 30% interest. Ontario Teachers' Pension Plan will provide the necessary funding, and its shareholding in Connexa will increase to around 83%.
Despite the dilution, Spark will retain certain governance rights, including board representation, and stand to benefit from expanding Connexa's business. Connexa is an independent mobile towers business in which Spark is a shareholder.
Also Read: Spark to Close Its 3G Network in New Zealand in Late 2025
Accelerating deployment of digital infrastructure in New Zealand
According to Spark, this move will facilitate the faster deployment of new digital infrastructure across New Zealand by leveraging infrastructure-sharing efficiencies.
However, the completion of the acquisition is subject to approval from the Overseas Investment Office (OIO), which is currently in advanced stages of review. Once the OIO's approval is obtained, the transaction will proceed, further reshaping the telecommunications landscape in New Zealand.
