New Zealand-based telco Spark is considering divesting its stake in Connexa, a mobile tower business, the company announced on Wednesday as it reviews its non-core assets. This consideration comes amid media speculation that the Ontario Teachers' Pension Plan (OTPP) is also seeking to sell its shareholding in the company.
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Ontario Teachers' Pension Plan's Potential Sale
Earlier this month, the Australian Financial Review reported that the pension fund, which currently holds an 83 percent stake in Connexa—owner of about 2,400, or two-thirds of New Zealand's cell towers used by telcos like Chorus, One NZ, and 2 Degrees—was contemplating whether to sell a portion of its Connexa holdings.
Connexa is an independent mobile tower business formed after the sale of a 70 percent stake in Spark's passive mobile infrastructure assets to the Ontario Teachers' Pension Plan, a Canadian pension fund, in July 2022, with the transaction completed in October 2022.
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Spark's Strategic Review of Non-Core Assets
"We are reviewing all non-core assets to determine if Spark remains the best owner, or if divestment or partnerships will deliver greater value to shareholders while further strengthening the balance sheet," Spark NZ said. "We have made the decision to divest our shareholding in mobile towers business Connexa, and while a transaction is not yet certain, the strong levels of interest we have received is reflective of the high quality of the Connexa business."
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Spark NZ noted that the company will provide a further update on the review of non-core assets at its interim results in February, or earlier in the case of any material developments.
