Spark sells remaining Connexa stake to CDPQ

Spark has announced the sale of its remaining 17% stake in mobile towers business, Connexa, to global investment group CDPQ for $314 million.

The transaction, which is subject to Overseas Investment Office approval, values Connexa in line with previous New Zealand mobile tower ebitda multiples.

Spark expects to recognise a gain of about $70m in reported ebitda on completion of the sale.

As part of the agreement, Connexa's majority owner, Ontario Teachers' Pension Plan, will also sell 33% of its shareholding to CDPQ, resulting in Ontario Teachers' and CDPQ each holding a 50% co-controlling interest in Connexa.

Spark will remain a key customer of Connexa and continue to determine the development of its mobile network.