(Reuters) -New Zealand’s infrastructure investor Infratil said on Monday it will acquire an 80% interest in interconnection platform Console Connect from Hong-Kong based telecommunications firm HKT Trust and HKT Ltd (HKT) for $160 million.
“It (the acquisition) enables us to invest in building a next-generation platform to support underlying growth in the demand for digital infrastructure and global connectivity solutions by enterprise and wholesale users,” said Infratil CEO, Jason Boyes.
The company, which is in the midst of strengthening its digital infrastructure portfolio, had also earlier disclosed plans to acquire a 49.95% stake in One New Zealand – the country’s second-biggest mobile phone operator by market share- in a deal valued at $1.1 billion.
Infratil will also offer six-year unsecured fixed-rate infrastructure bonds for up to NZ$75 million ($46.6 million) to New Zealand investors, expected to open on July 17, the company said in a separate statement.
The proceeds from the offer will be used to repay some of Infratil’s existing bridge loan used to fund the acquisition of One New Zealand.
Infratil said it will also execute a partnership with HKT, in which both companies will jointly invest up to $295 million over the course of two years.
Funds from the investment will be diverted to accelerate Console Connect’s sales and marketing, new sub-sea cable and network expansions as well as the platform’s research and development requirements, it added.
Through the initial investment, Infratil will own between 60-80% of Console Connect, with HKT holding the remainder.
The company expects the acquisition to complete by the third-quarter of 2024 assuming all regulatory approvals are granted by then, it said.
Shares of Infratil rose as much as 2.4% to NZ$10.39 by 0115 GMT, marking their best session in nearly one week.
($1 = 1.6098 New Zealand dollars)
(Reporting by Roushni Nair in Bengaluru; Editing by Diane Craft and Dhanya Ann Thoppil)