Spark announces sale of remaining shares in Connexa

MARKET RELEASE - THURSDAY, 12 DECEMBER 2024 Spark announces sale of remaining shares in Connexa Spark New Zealand today announced the sale of its remaining stake (~17%) in mobile towers business Connexa to global investment group CDPQ for $314 million. The transaction values Connexa on a consistent basis with previous New Zealand mobile tower EBITDAI multiples. Spark expects to recognise a gain on sale of around $70 million in reported EBITDAI on completion of the sale of its remaining stake. As part of the agreement Connexa’s majority owner, Ontario Teachers' Pension Plan ("Ontario Teachers'") will also sell 33% of its shareholding to CDPQ. On completion of the transaction Ontario Teachers’ and CDPQ will each hold a 50% co-controlling interest in Connexa. The transaction is subject to Overseas Investment Office approval and any necessary foreign regulatory filings required. Completion is anticipated to occur in the third quarter of FY25, at which stage Spark’s two appointed directors will resign from the Connexa board. Under the terms of the deal, Spark will remain a key customer of Connexa. Spark will continue to determine how its mobile network is developed, including where and when capacity investments occur, with Connexa then designing and deploying these build programmes. Spark will also continue to own all the 'smarts' of the network – such as radio equipment and spectrum. Spark New Zealand CEO, Jolie Hodson said: "In October we announced a review of our non-core assets and our intention to divest our remaining shareholding in mobile towers business Connexa to further strengthen our balance sheet. “The sale to CDPQ, a high-calibre global investment group, reflects the high quality of this asset and will ensure, alongside existing owner Ontario Teachers’, Connexa remains well positioned to deliver its services to customers, including Spark.” Connexa CEO, Rob Berrill, said, “We want to acknowledge the considerable support Spark and Ontario Teachers’ have provided as Connexa was established and rapidly scaled to become New Zealand’s leading mobile tower infrastructure company. We look forward to continuing to work with Ontario Teachers’ and CDPQ as we execute our business strategy, and with Spark, as a key customer and supplier, in delivering enhanced connectivity for all Aotearoa.” ENDS Authorised by: Stefan Knight Finance Director For more information contact For media queries please contact: Althea Lovell Corporate Relations Lead Partner (64) 21 222 2992 althea.lovell@spark.co.nz For investor queries please contact: Stefan Knight Finance Director (64) 27 252 9438 stefan.knight@spark.co.nz About Spark As New Zealand's largest telecommunications and digital services company, Spark’s purpose is to help all of New Zealand win big in a digital world. Spark provides mobile, broadband, and digital services to millions of New Zealanders and thousands of New Zealand businesses. www.sparknz.co.nz About Ontario Teachers’ Pension Plan Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of CAD $255.8 billion as at June 30, 2024. We invest in more than 50 countries in a broad array of assets including public and private equities, fixed income, credit, commodities, natural resources, infrastructure, real estate and venture growth to deliver retirement income for 340,000 working members and pensioners. Our more than 450 investment professionals operate in key financial centres around the world and bring deep expertise in a broad range of sectors and industries. We are a fully funded defined benefit pension plan and have earned an annual total-fund net return of 9.3% since the plan's founding in 1990. At Ontario Teachers', we don't just invest to make a return, we invest to shape a better future for the teachers we serve, the businesses we back, and the world we live in. For more information, visit otpp.com and follow us on LinkedIn.  About CDPQ CDPQ invests constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, CDPQ works alongside its partners to build enterprises that drive performance and progress. They are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2024, CDPQ’s net assets totalled CAD 452 billion. For more information visit cdpq.com, consult their LinkedIn or Instagram pages, or follow them on X. CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries. About Connexa: Connexa is Aotearoa New Zealand’s largest specialist mobile tower infrastructure company, operating a nationwide portfolio of more than 2,400 mobile sites. Connexa has an ambitious committed mobile tower build programme to meet New Zealand’s growing demand for wireless digital connectivity. For more information, visit connexa.co.nz or follow us on LinkedIn.