Decision |
Consent granted |
---|---|
Decision maker | Toitū Te Whenua Land Information New Zealand |
Decision date | 28 September 2022 |
Pathway(s) |
Significant business assets only |
Investment |
Up to 100% of the shares in Aotearoa Towers Limited |
Consideration | $1,700,000,000 |
Applicants |
HICL Infrastructure PLC Northleaf Essential Infrastructure Fund Master Partnership |
Vendor |
Vodafone New Zealand Limited |
Background |
The Applicants are seeking consent to acquire up to 100% of the shares in Aotearoa Towers Limited ("TowerCo"). The Applicants comprise a UK-Canadian investment consortium. HICL Infrastructure PLC is an investment company that targets investment in core infrastructure. Northleaf Essential Infrastructure Fund Master Partnership is an infrastructure investment fund targeting mid-market infrastructure in OECD countries. TowerCo is a wholly owned subsidiary of Vodafone New Zealand Limited (“Vodafone”). Vodafone will transfer its passive mobile infrastructure to TowerCo, which will then own and operate Vodafone’s telecommunications tower portfolio and associate assets. The passive mobile infrastructure is the towers, rather than the telecommunications equipment located on the towers. By agreement, Vodafone will continue to have access to these towers for the purpose of operating its mobile network. Infratil Limited, one of the current parent owners of Vodafone (holding a 49.95% interest), intends to reinvest by taking a 20% interest in TowerCo, which will dilute the Applicants’ indirect investment in TowerCo proportionately to 40% each. Independent operation of passive mobile infrastructure is a new concept in New Zealand, but a common model in overseas telecommunications. This model can allow for economic efficiencies and increased competition in the telecommunications industry. As some of Vodafone’s passive mobile infrastructure is located on residential land (being used for a non-residential purpose), Vodafone has obtained a discretionary exemption from the requirement for consent for an overseas investment in residential (but not otherwise sensitive) land. The Applicants have satisfied the OIO that the investor test has been met. The Minister of Finance has decided that the investment is not contrary to New Zealand national interests. |
More information |
Tessa Baker |