New Zealand operator 2degrees has sold its passive mobile telecommunications tower assets to Connexa for NZD 1.076 billion. According to 2degrees CEO Mark Callander, this sale will enable further investment in 5G build and increase the operator’s focus on its core business.
The sale includes 1,124 2degrees towers. In addition, 2degrees has committed to building another 450 locations with Connexa to provide expanded coverage and network density for 5G. 2degrees said it will continue to own the active elements of its network, including the radio access equipment, spectrum assets, transmission and backhaul.
Under the terms of the transaction, 2degrees has entered into a 20-year agreement with Connexa (plus rights of renewal) to secure access to existing and new towers, with an additional tower build and co-location commitment of 450 sites over the next 10 years.
The completion of the transaction is subject to approvals from the Overseas Investment Office (OIO) and Commerce Commission and is expected to occur mid-2023.
Connexa is an independent mobile towers business that was formed following the sale of a 70 percent stake in Spark’s passive mobile infrastructure assets to the Ontario Teachers’ Pension Plan in July. That deal was completed in October 2022.
Spark said its stake in Connexa will dilute to 17 percent from 30 percent following the 2degrees deal, as it will not provide funding for the transaction. Ontario Teachers’ will provide funding for the deal and its shareholding will increase to approximately 83 percent. Spark will retain its existing governance rights including board representation.
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