Spark New Zealand, the largest telecommunications company in New Zealand, has announced the sale of its remaining 17 percent stake in mobile tower business Connexa to global investment group CDPQ for NZD 314 million. The deal values Connexa at consistent EBITDAI multiples seen in previous New Zealand mobile tower transactions. Spark expects to record a NZD 70 million gain in EBITDAI upon completion of the sale.
Also Read: Spark New Zealand Considers Divesting Stake in Mobile Towers Business Connexa
Connexa’s New Ownership Structure
In addition to Spark's stake sale, Connexa's majority owner, Ontario Teachers' Pension Plan, will also sell 33 percent of its shares to CDPQ. Post-transaction, both Ontario Teachers' and CDPQ will each hold a 50 percent co-controlling interest in Connexa, Spark NZ announced on Thursday (December 12).
The transaction is subject to Overseas Investment Office approval and foreign regulatory filings, with completion expected in the third quarter of FY25. At that point, Spark's two appointed directors will resign from the Connexa board.
Despite the sale, Spark will remain a key customer of Connexa, continuing to guide network development and capacity investments while retaining ownership of critical network infrastructure.
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Partnership Between Spark and Connexa
"Under the terms of the deal, Spark will remain a key customer of Connexa. Spark will continue to determine how its mobile network is developed, including where and when capacity investments occur, with Connexa then designing and deploying these build programmes. Spark will also continue to own all the 'smarts' of the network – such as radio equipment and spectrum," the official release said.
Commenting on the transaction, Spark New Zealand CEO said, "In October, we announced a review of our non-core assets and our intention to divest our remaining shareholding in mobile towers business Connexa to further strengthen our balance sheet."
"The sale to CDPQ, a high-calibre global investment group, reflects the high quality of this asset and will ensure, alongside existing owner Ontario Teachers', Connexa remains well positioned to deliver its services to customers, including Spark."
Also Read: Spark New Zealand to Invest in Data Centres and 5G Over Three Years
Connexa
Connexa is Aotearoa New Zealand's largest mobile tower infrastructure company, operating a nationwide portfolio of more than 2,400 mobile sites.
