Download Weekly: Spark raises $314m selling remaining tower stake

Spark sells remaining mobile tower network stake for $314m

Spark says it has agreed to sell its remaining 17 percent stake in the Connexa mobile tower network to a Canadian investment firm.

The company flagged a potential sale of its remaining Connexa stake last month when it downgraded its 2025 guidance.

The sale to CDPQ (Caisse de dépôt et placement du Québec) is worth $314 million. Spark says it expects to book a gain of around $70 million. The sale is dependent on regulatory approval and should be completed next year during the company’s third quarter.

O Canada

At present Connexa’s majority owner is another Canadian entity: The Ontario Teachers' Pension Plan.

The OTPP was understood to be looking to offload some or all of its investment. As part of the current deal the OTPP will sell a third of its shareholding to CDPQ.

That would leave the two Canadian investors each with a 50 percent share in the tower business.

Spark to remain Connexa client

Spark will remain a Connexa customer. It says it will continue to have a say in how its mobile network will be developed, with Connexa designing projects and handling the building programme. Spark will also continue to use its own radio equipment and spectrum.

All three mobile networks, Spark, Vodafone and 2degrees, are Connexa customers.

Connexa was formed when Spark sold a 70 percent stake in its tower operation to The Ontario Teachers' Pension Plan in July 2022. At the time the business was known as TowerCo. Spark used some of the proceeds of the sale for a share buyback scheme.

Two years ago Connexa paid a billion dollars to buy 2degrees’ network of 1,124 towers.

Spark chief executive Jolie Hodson says: "The sale to CDPQ, a high-calibre global investment group, reflects the high quality of this asset and will ensure, alongside existing owner Ontario Teachers', Connexa remains well positioned to deliver its services to customers, including Spark.”

2degrees polishes its green credentials

2degrees says the Science Based Target Initiative (SBTi) has validated the telco’s Net Zero by 2040 target. The company’s plan to reach that target includes a commitment to move to 100 percent renewable energy by 2030 and including sustainable practices throughout its business.

To earn SBTi validation, 2degrees must undergo emissions audits, develop reduction strategies and work with its suppliers.

Mark Callander, 2degrees chief executive says: “Being the first telecommunications company in New Zealand to secure SBTi validation for our Net Zero target shows that we’re serious about reducing emissions at their source.”

Among other initiatives 2degrees says it is working with suppliers to optimise energy use across its 5G network and in its data centres. It is converting its vehicle fleet to electric vehicles and introducing energy efficient measures into its retail stores. The company will also work with its suppliers and include a sustainability assessment as part of its supplier due diligence process.

2degrees’ rivals Spark and One New Zealand can both show they have their own green credentials. Spark CEO Jolie Hodson is a convenor of the Climate Leaders Coalition and leads from the front as the company tackles its sustainability challenges. She also sees digital equity as part of sustainability. Meanwhile One New Zealand tabled its sustainability report in August.

Microsoft unboxes New Zealand’s first hyperscale data centre

Microsoft opened its first hyperscale data centre in New Zealand on Thursday and with typical big tech chutzpah claimed it to be “ the most significant milestone in the company’s nearly 40-year history in New Zealand.”

Country manager Vanessa Sorenson said the New Zealand data centre is the most sustainable hyperscale centre in the company’s portfolio of more than 60 data centres around the world.

While these are hefty claims, they underline the importance the company’s local business attaches to the investment.

Smaller names shine in NZ Compare awards

This year’s NZ Compare awards highlight and reward the hard work and customer focus of the nation’s smaller internet service providers. It also showcased the sector’s geographic spread.

Christchurch-based Ultimate Broadband took the prize for the best wireless service provider while 360Net won the award for best value broadband provider. Hamilton’s Lightwire was recognised at the best rural service provider.

Sustainability-focused Zeronet was the best fibre broadband provider while Contact took the award for best bundled plan and 2degrees won the gong for best customer support.

Napier-based Now Broadband is the best business broadband provider and Voyager won the people’s choice award.

The mobile awards were dominated by relative minnows. Rocket Mobile is recognised as the best value mobile provider. Kiwi Mobile took the people’s choice award and Nova has the best customer support.

Disclosure: I am a judge for the NZ Compare Awards.

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