Infratil to Acquire Majority Stake in One New Zealand

Infratil Limited, a major infrastructure investment company, has announced its agreement to acquire Brookfield Asset Management Ltd’s 49.95 percent stake in One New Zealand (One NZ). The acquisition, valued at NZD 1.8 billion, will increase Infratil’s ownership in One NZ to 99.90 percent. The deal aims to strengthen Infratil’s position in the digital services and connectivity sector in New Zealand.

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Funding the Acquisition

The acquisition will be funded through a combination of NZD 850 million equity raising, cash reserves, and debt facilities. This move reflects Infratil’s confidence in the growth potential of One NZ, driven by data and connectivity tailwinds. The company expects further upside through ongoing simplification initiatives and a renewed focus on long-term value creation.

Growth Potential

One NZ, a digital services and connectivity company in New Zealand, boasts an extensive network with 2.7 million connections and population coverage exceeding 98 percent of the country. Infratil says since its initial acquisition in 2019, One NZ has experienced a significant transformation and achieved a strong market position in the mobile sector, with growth across multiple segments.

According to Infratil, full control over One NZ will provide greater flexibility in the business plan and capital allocation, enabling long-term value creation.

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Strategic Benefits

The acquisition is expected to have a positive impact on Infratil’s cash generative core, ensuring stable and growing cash flows to support further development platforms. As a result, Infratil has increased its FY2024 Proportionate EBITDAF guidance range to NZD 800 million – NZD 840 million, reflecting the enhanced contribution from One NZ.