Infratil revealed plans to take full control of One New Zealand after reaching a deal to acquire Brookfield Asset Management’s stake in the operator for NZD1.8 billion ($1.1 billion), a move highlighting the infrastructure investor’s confidence in the data and connectivity sector.

In a stock market filing, Infratil explained the acquisition will increase its interest from 49.95 per cent to 99.9 per cent and gives the operator an enterprise value of NZD5.9 billion.

It will be funded by raising NZD850 million in equity, along with cash reserves and NZD950 million in debt facilities.

Infratil stated the investment is supported by an expected upside driven by simplification initiatives undertaken by One New Zealand.

Jason Boyes, Infratil CEO, said the investment is “strategically and financially compelling”, adding the operator “has had strong momentum” after a “recent rebrand and other business transformation initiatives”.

The executive added having full control of One New Zealand “provides business plan and capital allocation flexibility, and a renewed focus on long-term value creation”.

One New Zealand CEO Jason Paris said the increased investment is “a huge vote of confidence in the direction and momentum within our business and means this important New Zealand company will be 100 per cent locally owned and managed for the first time”.

Completion of the investment is expected after receipt of the equity placement proceeds.

Of the remaining shareholding, Paris holds a 0.03 per cent stake and chief enterprise director Lindsay Zwart 0.02 per cent.