Spark New Zealand completed a sale of its remaining 17 per cent stake in independent tower unit Connexa to Canada-based CDPQ for NZD314 million ($182.3 million), with majority shareholder Ontario Teachers’ Pension Plan (OTPP) to sell 33 per cent of its stake to the global investment group.

After the transaction, CDPQ and OTPP will each hold a 50 per cent co-controlling interest in Connexa.

Spark expects to recognise a gain on of about NZD70 million in reported EBITDAI on the completion of the sale, it stated.

The deal requires approval from the Overseas Investment Office and other relevant regulatory bodies. Spark targets completion by end-March 2025, when its two directors will resign from the Connexa board.

Spark stated it would continue to make decisions on investing in new capacity for its mobile network.

The operator announced in October it would review non-core assets with an eye to divesting its remaining shareholding in Connexa to strengthen its balance sheet.

In June 2023, Connexa acquired the passive infrastructure of 2degrees, which is leasing space on the 1,124 towers covered in the 20-year deal.

Connexa’s stake held by OTPP increased from 70 per cent to 83 per cent following the acquisition, while Spark’s dropped from 30 per cent to 17 per cent.