OTPP-Backed Connexa to Acquire 2degrees Mobile’s Mobile Telecom Tower Assets
Posted on 12/18/2022
Canadian public pensions are on the hunt for high-quality digital infrastructure assets in growing markets. Connexa was formed following the sale of a 70% stake in Spark New Zealand’s passive mobile tower infrastructure assets to Ontario Teachers’ Pension Plan in July 2022, with the transaction closing in October 2022.
Revealed on December 14, 2022, Connexa and Ontario Teachers’ Pension Plan reached an agreement with 2degrees Mobile, an entity owned by managed funds of Macquarie Asset Management and Aware Super, to acquire 2degrees’ passive mobile telecommunications tower assets for NZ$ 1,076 million.
2degrees currently owns and operates approximately 1,1242 mobile towers located across Aotearoa New Zealand. Under the terms of the deal, 2degrees has entered into a 20 year-agreement with Connexa (plus rights of renewal) to secure access to existing and new towers, with an additional tower build and co-location commitment of 450 sites over the next 10 years.
Ontario Teachers’ will contribute all the additional equity capital required to the acquisition. Following completion of the acquisition, Ontario Teachers’ shareholding will increase to approximately 83% and Spark’s shareholding will reduce to approximately 17%.
In addition to Ontario Teachers’ Pension Plan acquisition of Spark’s tower assets, the pension investor has previously invested in Asia Pacific Healthcare Group, a major New Zealand pathology business, Lumino the Dentists (through Abano Healthcare), and OTPPNZ, which operates 35,000 hectares of timberland in the Central North Island region.
Completion of the acquisition is subject to customary approvals from the Overseas Investment Office (OIO) and Commerce Commission and is anticipated to occur in middle of 2023.
Keywords: Ontario Teachers Pension Plan.