Spark NZ shares lift on sales of remaining mobile towers stake
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More news: Shares in Spark New Zealand are up nearly 3% to $2.62 in early trading on the ASX after the telecoms company sold its balance 17% stake in mobile towers business Connexa to Canadian pension fund CDPQ.
Spark expects to recognise a gain of NZ$70 million ($63.6 million) on the sale and is part of its strategy to divest non-core assets for NZ$314 million.
Spark NZ sells balance stake in mobile towers for $285m
The news: Telecoms company Spark New Zealand has sold the balance 17% stake in its mobile towers business to Canadian pension fund CDPQ as it looks to divest non-core assets.
The numbers: Spark agreed to sell the 17% stake in the Connexa business to CDPQ for NZD314 million ($285 million). It expects to recognise a gain of NZD70 million on the sale.
As part of the deal, majority owner Ontario Teachers Pension Plan will also sell 33% of its stake to CDPQ, giving both pension funds an equal 50% stake in Connexa.
The context: Under the terms of the deal, Spark will remain a key customer of Connexa and 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 sale comes just months after Spark flagged in October it was reviewing "all non-core assets", after downgrading its full-year earnings and dividend guidance amid weak consumer spending. Spark had originally sold a majority stake in its mobile tower business to Ontario Teachers Pension Plan in 2023.
The source: ASX announcement
