New Zealand-based infrastructure investment company Infratil has bought the remaining 49.95% stake it did not already own in fibre network operator One New Zealand (One NZ) for NZ$1.8bn (€1bn).

Infratil and Brookfield bought One NZ from Vodafone in 2019 for NZ$3.4bn.

Infratil is raising NZ$850m, made up of a NZ$750 fully-underwritten institutional placement and NZ$100m retail offer, to pay for the acquisition. The balance of the transaction will be covered by debt facilities and cash reserves.

In a conference call, Infratil’s CEO Jason Boyes said the deal improved his firm’s flexibility to invest in the short term for long-term growth. 

He said the transaction “gives us 100% control over One NZ’s stable and growing cashflows to support our other platforms”.

One NZ CEO, Jason Paris, said: “Infratil’s increased investment in One New Zealand is a huge vote of confidence in the direction and momentum within our business, and means this important New Zealand company will be 100% locally-owned and managed for the first time.”

Udhay Mathialagan, Brookfield managing director and global CEO of Data Centres, and outgoing chair of One NZ, said: “During our ownership of One NZ, we have overseen the investment of more than a billion dollars to expand and strengthen New Zealand’s digital infrastructure.”

Mathialagan said the business was rebranded to One NZ (previously Vodafone NZ), and its tower assets were carved out as it navigated through the pandemic.

“While we continue to see further long-term value in One NZ, we were attracted to realising a strong return now,” he said.

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