Deal done: Infratil and Brookfield go unconditional on Vodafone NZ
- 12 July, 2019 06:36
Vodafone NZ buyout to close a month earlier than forecast.
Infratil and Canadian partner Brookfield Asset Management announce their bid for Vodafone NZ is now unconditional following approvals from the Overseas Investment Office and Commerce Commission.
Infratil said completion of the $3.4 billion transaction is expected to occur on 31 July and has updated its earnings guidance.
At Infratil's 2019 results announcement on 17 May, Infratil provided an EBITDA guidance range of $635 million to $675 million for its 2020 financial year.
This included a seven month contribution from Vodafone NZ, based on a 49.9 per cent share of underlying EBITDA from 1 September.
Based on an expected completion date of 31 July, Infratil told shareholders today it now expected its 2020 underlying EBITDA to be in the range of $655 million to $695 million, representing an eight month contribution from Vodafone NZ.
On completion, Vodafone Group and Vodafone NZ will enter into a partner market agreement, which will include use of the Vodafone brand, preferential roaming arrangements, access to Vodafone’s global IoT platform and central procurement function, and a range of services for the business and consumer markets.
Announcing the deal in May, Infratil told investors the acquisition "significantly strengthens the cash generative core" of its portfolio.
Vodafone NZ increases Infratil's exposure to long-term data and connectivity growth and complements the acquisition of Canberra Data Centres, it said.
"Telecommunications is critical infrastructure for New Zealand and Vodafone NZ is an integral part of everyday Kiwi life," said Infratil chairman Mark Tume.