Spark New Zealand (ASX:SPK) to sell 70pc of TowerCo for $900m

• Spark New Zealand (SPK) will sell a 70 per cent interest in its TowerCo business to the Ontario Teachers’ Pension Plan Board
• The $900 million purchase is expected to be complete in the first half of FY23 and values the business at $1.175 billion
• The terms of sales included a 15-year agreement, which will allow Spark access to new and existing TowerCo sites, as well as a building commitment for a further 670 over the next ten years
• The company says the proceeds of the sale will be used to drive further growth
• Shares in the company last traded at $4.45 each

Telecommunication company, Spark New Zealand (SPK) will sell a 70 per cent interest in its TowerCo business to the Ontario Teachers’ Pension Plan Board.

The $900 million purchase is expected to be complete in the first half of FY23 and values the business at $1.175 billion.

TowerCo is a leading New Zealand tower’s business with over 1200 sites.

Under the terms of the sale, SPK entered a 15-year agreement with TowerCo, which will allow it access to new and existing sites, with a building commitment of 670 sites over the next ten years.

Spark New Zealand Chair Justine Smyth said the company will use the proceeds of the sale to drive further growth.

“The transaction will deliver proceeds of $900 million, enabling direct shareholder returns and investment in future growth opportunities that will accelerate Spark’s transition from traditional telecommunications to higher growth digital services,” she said.

Shares in the company last traded at $4.45 each.