Vodafone New Zealand sells off mobile towers business for €1 billion

Vodafone New Zealand has announced a deal to sell off its passive mobile tower assets.

The operator, which is owned by infrastructure investment company Infratil and Brookfield Asset Management, said that it will sell the business for NZ$1.7 billion (€1.03 billion). 

The passive mobile tower assets will be bought InfraRed Capital Partners and Northleaf Capital Partners, with each holding 40% stakes in the new standalone business. Infratil will reinvest to hold 20% in the new TowerCo.

The new company will own and operate 1,484 mobile towers, and will enter into a 20-year master services agreement with Vodafone NZ (with extension rights) providing Vodafone with access to both existing and new towers. The new TowerCo will also commit to building at least 390 additional sites over the next ten years. 

Vodafone CEO Jason Paris said, “We’re pleased at the outcome of the process, which attracted significant interest. Infratil, InfraRed Capital Partners and Northleaf Capital are outstanding investors who share our vision for Aotearoa New Zealand and will help us to accelerate the roll out of critical infrastructure for our customers.”

The sale is expected to close in Q4, subject to approval from the Overseas Investment Office of Canada.

The announcement comes days after Vodafone New Zealand rival Spark New Zealand announced a NZ$900 million (€548 million) deal with the Ontario Teachers’ Pension Plan Board for 70% of its tower assets.