Vodafone seeks to sell billion-dollar mobile towers

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Telecommunications giant Vodafone New Zealand is investigating the potential sale of its mobile towers.

Photo: RNZ / Nate McKinnon

He said a market engagement process was already underway, with financial services firms Barrenjoey and UBS tasked with advising Vodafone.

Vodafone has the largest tower portfolio in New Zealand, with 1,487 wholly-owned mobile towers spread across the country, covering 98% of the population.

Bloomberg reported that the portfolio could potentially be valued at up to $1.5 billion.

Vodafone told the stock market through infrastructure investment firm Infratil that a sale would mean its customers “will benefit from a more focused investment in active mobile network assets”.

Infratil owns half of Vodafone NZ, with Canada’s Brookfield Asset Management owning the other half.

The announcement follows a recent investor update from Infratil, which said Vodafone was exploring the “possibility of network capital release options”.

Vodafone said the sale would only include its “passive mobile infrastructure assets”, which included the physical tower, masts and posts, foundations, fencing and access facilities, and all contractual rights. associates to occupy the site area.

He said he did not include active assets, such as spectrum, core mobile network, radio network or back-haul.

“Vodafone New Zealand is committed to constructing additional sites to maintain its relative coverage and capacity position going forward. Expected FY23 EBITDA is $51 million,” the company said.

He said other benefits of the sale included “more specialized passive infrastructure ownership and stronger incentives to co-locate on common tower assets, in turn leading to better capital efficiency and reduced environmental impacts.” “.

“As the infrastructure needed to support digital economies grows and telecom companies seek to unlock value that can be reinvested, separate ownership of passive mobile tower assets has become increasingly common. .”

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