Infratil’s Vodafone NZ To Sell Mobile Tower Assets For USD 1.1 Bn


New Zealand’s infrastructure investment company Infratil Ltd said on Monday Vodafone New Zealand would sell its passive mobile tower assets for NZ$1.7 billion ($1.05 billion) to funds managed by two global investment firms.

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

Vodafone NZ, of which Infratil owns about 49.95%, will sell 1,484 mobile towers to funds managed by London-based InfraRed Capital Partners and Toronto-based Northleaf Capital Partners. Each of the buyers will hold 40% of the new towers entity, TowerCo, while Infratil will reinvest proceeds from the sale to acquire a 20% stake.

TowerCo will enter a 20-year deal 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. The sale is expected to close in the fourth quarter, subject to approval from Canada’s Overseas Investment Office. Canada’s Brookfield Asset Management holds a 49.95% stake in Vodafone NZ.

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