Spark announces sale of 70% of TowerCo business for $900m

Today, Spark New Zealand announced the sale of 70% of its TowerCo business to Ontario Teachers' Pension Plan Board for $900 million.

The transaction values the business at $1.175 billion, representing a FY23 pro-forma EBITDA multiple of 33.8x.

Spark will receive net cash proceeds of $900 million subject to Overseas Investment Office approval, expected in the first half of FY23.

The 15-year agreement between Spark and TowerCo includes rights of renewal and a build commitment of 670 sites over the next 10 years.

Spark intends to release an updated capital management policy on August 24.