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- Infratil (IFT) announces investee business Vodafone NZ will sell its passive mobile tower assets for NZ$1.7 billion (A$1.5 billion) to two global investors
- The new buyers, InfraRed Capital Partners and Northleaf Capital Partners, will each hold 40 per cent of the new towers entity, TowerCo, with Infratil to buy a 20 per cent stake
- Under the deal, the new TowerCo will enter a 20-year master services agreement with Vodafone NZ and will build at least 390 additional sites over the next 10 years
- The sale is expected to close in the fourth quarter of this year, subject to approval from Canada’s Overseas Investment Office
- IFT shares last traded at $7.25 on July 15
New Zealand infrastructure investment company Infratil (IFT) has announced investee business Vodafone NZ would sell its passive mobile tower assets for NZ$1.7 billion (A$1.5 billion) to two global fund managers.
The new buyers, InfraRed Capital Partners and Northleaf Capital Partners, will each hold 40 per cent of the new towers entity, TowerCo, with Infratil to reinvest proceeds from the sale to buy a 20 per cent stake in the entity.
The sale, according to Infratil, represents a 2023 financial year Pro-forma earnings before interest, tax, depreciation, and amortisation (EBITDA) multiple of 33.8 times.
Infratil said the new TowerCo would comprise 1484 mobile towers and would be the largest New Zealand towers business, covering around 98 per cent of the country’s population.
Under the deal, TowerCo will enter into a 20-year master services agreement with Vodafone NZ to provide Vodafone with access to existing and new towers. TowerCo will also build at least 390 additional sites over the next 10 years.
Infratil CEO Jason Boyes said today’s asset sale highlighted why Vodafone NZ was an “excellent” Infratil investment.
“We have unlocked a significant portion of the value of our original equity invested in Vodafone, whilst retaining that investment and a 20 per cent stake in TowerCo,” Mr Boyes said.
“InfraRed Capital Partners and Northleaf Capital are high-calibre investors who share our vision for what the new TowerCo can deliver across New Zealand. This transaction is a win-win for Infratil shareholders.
The sale is expected to close in the fourth quarter of this year, subject to approval from Canada’s Overseas Investment Office.
Infratil shares last traded at $7.25 on July 15.
