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
country.

"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
opportunities;

- 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.


<https://itbrief.co.nz/story/sold-infratil-partner-snap-up-vodafone-nz>

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