Spark New Zealand mulls stake sale in mobile towers business

New Zealand-based telco Spark is considering divesting its stake in Connexa, a mobile tower business, the company said on Wednesday, at a time when media speculation has emerged that the Ontario Teachers’ Pension Plan (OTPP) is also looking to offload its shareholding as well.
OTPP, a pension fund based out of Canada, bought a 70% stake in the passive mobile towers at a valuation of NZ$1.18 billion ($703.75 million) in 2022.

The Australian Financial Review, earlier in the month, reported that the pension fund – currently holding an 83% stake – was mulling whether it should sell a slice of Connexa.

OTPP declined to comment while Spark did not give out any additional details about the proposed divestment.

Spark shares fell as much as 3.7% to A$2.85, hitting their lowest since August, 2015.

“While a transaction is not yet certain, the strong levels of interest we have received is reflective of the high quality of the Connexa business,” Spark said.

The company also said it is looking to unlock further value for its shareholders and is reviewing all of its non-core assets in a bid to further strengthen its balance sheet.

Spark has reported a 72.2% slump in net profit at NZ$316 million for the 2024 financial year.