Vodafone to sell NZ business to Infratil Brookfield in US$2.36B deal

By Mateen Dalal

Vodafone is seeking to consolidate its businesses in New Zealand and Australia

It had tried to sell Vodafone NZ to satellite TV provider Sky Network in 2017

Reports confirm that Vodafone Group Plc, the British multinational telecommunications conglomerate, has recently agreed to sell its New Zealand business to a consortium comprising of Canada's Brookfield Asset Management and Infratil Ltd, a New Zealand-based infrastructure investment company, for around 2.1 billion euros (US$2.36 billion).

Sources familiar with the matter commented that Vodafone is seeking to consolidate its businesses in New Zealand and Australia, with a total $11 billion worth agreement underway to amalgamate its Australian joint venture business with TPG Telecom. Antitrust regulator of Australia has already blocked that merger bid.

Sources further informed that Deutsche Craigs Limited and Deutsche Bank are acting as a financial consultant to Vodafone.

Apparently, in 2017, Vodafone had attempted to sell Vodafone NZ to NZ television satellite TV provider, Sky Network Television for a total amount of NZ$3.44 billion but did not get regulatory consent due to monopoly concerns.

Vodafone NZ’s newly appointed Chief Executive Officer, Jason Paris had stated in 2018 that it would seek to go public in 2020. In May 2019, Infratil had mentioned that it was in discussions with Vodafone to acquire the its New Zealand operations along with another unnamed party.

Vodafone recently said that after completion of the deal, it would enter into an agreement with Vodafone New Zealand to enable it to use its brand name and specific services. The completion of the deal is still dependent on essential regulatory approvals. As of December 31, 2018, Vodafone New Zealand had nearly two million mobile customers compared to about 700 million for parent Vodafone Group.

Sources mentioned that separately, Vodafone Idea, India’s largest telecom operator, is planning to raise money through a private infrastructure investment trust of its fibre assets. To transfer its optical fibre assets to a wholly owned subsidiary named Vodafone Towers, the company is planning to seek shareholder approval.

Source Credit: https://finance.yahoo.com/news/vodafone-offloads-nz-business-brookfield-175911557.html