Vodafone to sell New Zealand subsidiary for NZ$3.4 billion
Vodafone New Zealand will be sold to Canada’s Brookfield Asset Management and infrastructure operator Infratil.
British telco Vodafone on Tuesday said it will be selling its wholly-owned New Zealand arm to an investment consortium for NZ$3.4 billion.
Vodafone New Zealand will be sold to Canada’s Brookfield Asset Management and infrastructure operator Infratil. The New Zealand firm will continue to use the Vodafone brand and have preferential agreements with Vodafone for aspects of the business such as global roaming, access to tech platforms, and procurement.
The deal was announced early on Tuesday, before Infratil shares began trading on the New Zealand Stock Exchange. Shares of Infratil closed the day’s session 2.61% lower, at NZ$4.48.
The planned deal, which is expected to be cleared by the end of August, will require the approval from New Zealand’s competition watchdog the Commerce Commission and the Overseas Investment Office.
Vodafone New Zealand is the country’s biggest mobile phone operator and the second-largest telecoms carrier. The telco’s rivals include Spark New Zealand and 2degrees.
According to the New Zealand Commerce Commission, as of 2017, Vodafone owns close to 40% of the mobile subscriber market, followed by Spark at more than 35%, and 2degrees at around 25%.
In 2017, a planned merger between Vodafone New Zealand and pay-TV Sky Network Television was blocked by authorities, who had argued that the joined-entity would own too much market share. With the earlier deal, Vodafone would have been able to cash out NZ$3.4 billion and also retain a 51% operational control of the merged entity.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.