2degrees Mobile has entered into an agreement to sell its passive mobile telecommunications tower assets to Connexa for NZ$1.1 billion (A$996 million).
The tower portfolio includes 1,124 mobile towers across the country.
The sale also includes a 20-year agreement with rights of renewal between 2degrees Mobile and Connexa to secure access to existing and new towers, including a commitment to build 450 sites over 10 years.
Connexa was formed following the sale of a 70 per cent stake in Spark New Zealand’s passive mobile tower infrastructure assets to Ontario Teachers’ in July 2022. Following completion of this acquisition, Ontario Teachers’ shareholding in Connexa will increase to approximately 83 per cent and Spark’s shareholding will reduce to approximately 17 per cent.
Key Dates
| Dec 2022 | Project Announcement |
| Jul 2023 | Financial Close |
PROJECT HISTORY
| Jul 2022 | Spark New Zealand announced it entered into an agreement to sell 70 per cent of its TowerCo business to the Ontario Teachers’ Pension Plan Board for NZ$900 million (AU$817 million). Following the sale, both entities established an independent mobile towers business, Connexa. |
| Dec 2022 | Connexa announced the agreement to acquire 2degrees Mobile's tower assets. |
| Mar 2023 | New Zealand's Commerce Commission published a Statement of Issues regarding the proposed sale, suggesting that it would result in only two large-scale suppliers in the country and thus may reduce market competition. The Commission confirmed it is scheduled to make a decision on the application by 19 May 2023. |
| Apr 2023 | 2degrees published a submission in response to the Commerce Commission's Statement of Issues. |
| May 2023 | New Zealand's Commerce Commission granted clearance for Connexa to acquire certain passive mobile telecommunications infrastructure assets from Two Degrees Networks and Two Degrees Mobile. |
| Jun 2023 | Financial close was reached for the sale of 2degrees Mobile's tower assets to Connexa. |
