Spark New Zealand (ASX:SPK) has announced the sale of its remaining 17% stake in Connexa, the mobile towers business, to CDPQ, a global investment group, for $314 million. Spark expects to recognize a gain of approximately $70 million in reported EBITDAI from this transaction.
Spark New Zealand has finalized an agreement to sell its remaining 17% stake in Connexa to CDPQ, aligning Connexa's valuation with industry standards. The Ontario Teachers' Pension Plan will also sell 33% of its share to CDPQ, resulting in a 50% co-controlling interest for both parties in Connexa. The transaction is pending regulatory approvals with expected completion in the third quarter of FY25. Despite this sale, Spark will remain a key customer of Connexa, retaining ownership of essential network components. The move aligns with Spark's strategic focus on core operations and strengthening its financial standing. Connexa plans to continue expanding its mobile tower infrastructure to meet New Zealand's growing digital connectivity demands.
The sale is part of Spark's strategic review of non-core assets, aiming to strengthen the company’s balance sheet.