• [NEWS] Vodafone NZ sold for NZ$3.4 billion

    From Your Name@21:1/5 to All on Tue May 14 09:55:26 2019
    Maybe Vodafone NZ will now start offering real "competitive" prices
    (instead of just copy-cat ones) and proper internet services (instead
    of just ditching what they can't be bothered doing) ... nah, that won't
    happen. :-\

    From ITBrief.co.nz ...

    SOLD: Infratil & partner snap up Vodafone NZ
    Brookfield Asset Management and Infratil will hand over
    NZ$3.4 billion to acquire Vodafone New Zealand, pushing
    other major bidders including KKR and TPG Capital out
    of the game.

    Infratil and Brookfield Asset Management, a company
    headquartered in Toronto, Canada will collectively
    purchase 100% of Vodafone New Zealand. Together, they
    make up the consortium.

    Vodafone Group chief executive officer Nick Read says,
    "An important aspect of our strategy is the active
    management of our portfolio and deleveraging, which this
    transaction further demonstrates."

    On completion, Vodafone and VFNZ will enter into a
    Partner Market agreement. This 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.

    "We have always been proud of our Vodafone New Zealand
    business, which has a great team, and we look forward to
    a continued close relationship through our Partner Market
    agreement," says Read.

    The Consortium has agreed to acquire VFNZ for a cash
    consideration equivalent to an Enterprise Value of
    NZ$3.4bn, implying an FY'19 LTM multiple of 7.3x Adjusted
    EBITDA and 16.2x Adjusted OpFCF.

    In FY 2019, Vodafone New Zealand pulled in almost
    $2 billion revenue.

    "The Acquisition value implies an enterprise value to
    FY2020F Underlying EBITDA multiple of 6.9x - 7.4x and is
    expected to deliver strong cash flow to support current
    and future growth opportunities," a statement from
    Infratil says.

    Infratil chairman Mark Tume adds that Vodafone is an
    important part of everyday New Zealanders' lives, and
    telecommunications is critical infrastructure for the

    "The quality and availability of its networks have a
    direct bearing on New Zealand's competitiveness and
    future growth prospects. We are very excited to be a part
    of Vodafone NZ's next stage of development."

    "Vodafone NZ has been rigorously assessed over the past
    several months. We have done an extensive amount of work
    to ensure we understand the opportunities available to
    the business, in particular, the ability to use next
    generation 5G technology to significantly enhance network
    capability and future services to Vodafone NZ customers.
    We expect that this Acquisition will create strong,
    long-term value for Infratil shareholders."

    He adds that Infratil has already proven its ability to
    revamp New Zealand businesses, particularly with its
    acquisition of Shell New Zealand in 2010, which it
    converted to Z Energy.

    Vodafone CEO Jason Paris also welcomes Infratil and
    Brookfield Asset Management as buyers.

    "We have a lot of respect for both Infratil and Brookfield
    and we are very pleased to have these two experienced
    global infrastructure investment partners on board.
    Infratil brings extensive knowledge and experience of the
    sector. I believe Marko Bogoievski's professional
    background in the sector will be valuable and I look
    forward to working closely with him and the Infratil team
    moving forward," says Paris.

    Brookstream Asset Management Asia Pacific CEO Stewart
    Upson says that the opportunity enables Brookfield to
    invest in a large-scale, high-quality data infrastructure
    business with one of New Zealand's most experienced
    infrastructure managers.

    "Data has been one of the fastest growing commodities in
    the world. We expect this rapid growth to persist for the
    foreseeable future, driven by greater smartphone
    penetration, increasing video consumption, the advent of
    5G networks and new and evolving uses," says Upson.

    The acquisition still needs to go through regulatory
    approval but if all goes well, it should close in
    Vodafone's 2020 financial year.

    A quick look at what Infratil and Brookfield are getting
    for their money, according to Infratil:

    - Attractive market dynamics driven by growth in
    mobile usage and data consumption;

    - Established market position (#1 in mobile and #2
    in fixed broadband) in the New Zealand
    telecommunications sector;

    - Extensive national infrastructure, including over
    1,500 mobile cell sites, spectrum rights and a
    rural satellite network, over 10,000km of cabling,
    local fibre in major city centres, Hybrid Fibre
    Coaxial gigabit network in Wellington and
    Christchurch as well as access to the Tasman
    Global Access cable;

    - Executive team with a wealth of telecommunications
    industry experience and a proven track record of
    delivering growth and improving customer
    experience through innovation;

    - A sensible regulatory environment, with the
    Government sponsored fibre roll-out initiative and
    enhancement of rural coverage, provides additional

    - A cornerstone investment within a simplified
    Infratil portfolio, that provides stable earnings
    and strong New Zealand cash flow generation to
    support current and future growth opportunities;

    - Infratil's demonstrated track record of
    establishing and supporting a standalone New
    Zealand entity formerly held within a
    multinational and creating significant value for
    Infratil shareholders;

    - Vodafone NZ will continue to benefit from being a
    Vodafone Partner Market under long-term service
    agreements, ensuring the best of "Global and Local"
    for New Zealanders; and

    - Investing alongside an experienced global
    infrastructure investment partner in Brookfield.


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