Spark NZ completes 75% selldown in data centre business to Pacific Equity Partners
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The news: Telecoms company Spark New Zealand has completed the sale of a 75% stake in its data centre business to private markets investor Pacific Equity Partners (PEP), first announced last August.
The numbers: Spark said the transaction values the business at up to NZD705 million ($608 million). The telco has received initial cash proceeds of NZD453 million, with additional deferred proceeds of up to NZD98 million contingent on performance-based objectives out to December 2027.
The initial payment is reduced from a previously announced NZD486 million due to the timing of capital expenditure, the company said.
Spark's data centre business currently has over 23 megawatts of built capacity at 11 operating facilities across New Zealand.
The context: Spark's data centre assets and operations have now transferred over to a new stand-alone company, called TenPeaks Data Centres, with Spark holding two seats on the board.
Spark CEO Jolie Hodson and chief financial officer Stewart Taylor have been appointed as non-executive directors, alongside Andrew Charlier, Evan Hattersley and Michael Bendeli from PEP's secure assets fund.
What they said: "We look forward to working together through our 25% retained stake, and as a key data centre customer, to grow the business and create further value for our shareholders, while delivering the infrastructure that will support New Zealand's digital future," said Hodson.
The source: ASX
