Vodafone New Zealand to sell cellphone tower assets for US$1.05 billion

DRAWING. Vodafone New Zealand will sell its passive cell tower assets for NZ$1.7 billion, or US$1.05 billion. REUTERS/Andrea Comas/File Photo GLOBAL BUSINESS WEEK AVENIR – SEARCH GLOBAL BUSINESS MAY 15 FOR ALL IMAGES

Journalist: Adrianus Octaviano | Editor: Handoyo.

KONTAN.CO.ID – WELLINGTON. New Zealand infrastructure investment firm Infratil Ltd said Vodafone New Zealand would sell its passive cell tower assets for NZ$1.7 billion, or US$1.05 billion, to a managed fund. by two global investment firms.

For information, Infratil holds around 49.95% of the capital of Vodafone NZ. Brookfield Asset Management Canada holds another 49.95% stake in Vodafone NZ.

Citing Reuters (18/7), Vodafone NZ will sell 1,484 cell towers to a fund managed by London-based InfraRed Capital Partners and Toronto-based Northleaf Capital Partners.

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Each buyer will own 40% of the new tower entity, TowerCo, while Infratil will reinvest the sale proceeds to acquire a 20% stake.

TowerCo will enter into a 20-year contract with Vodafone NZ for access to existing and new towers. TowerCo will build at least 390 additional sites over the next decade, Infratil said in a statement.

Read also : Together with Intel and several silicon vendors, Vodafone develops OpenRAN innovations

The sale is expected to close in the fourth quarter, subject to approval by the Canadian Overseas Investment Office.

The sale follows a series of divestments by several telecom operators as they reduce debt and focus on their active mobile assets. Last week, Spark New Zealand announced the sale of a 70% stake in its tower business for NZ$900 million.

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