The deal involves the separation and sale of 2degrees' cellphone towers
Commercial law firm Simpson Grierson has assisted 2degrees on the sale of its passive cellphone tower assets to Connexa, an independent mobile tower company.
The $1.076 billion transaction involved the separation and subsequent sale of 2degrees’ tower assets, merging the tower networks of 2degrees and Spark under the Connexa brand.
Simpson Grierson’s team was co-led commercial partners Michael Pollard and Simon Vannini. They were joined by partners James Craig and Andrew Harkness, as well as special counsel Rob Macredie, senior associates Catherine Shipton, Nick Bland and Zelda Gower, senior solicitor Elsie Stone, and solicitors Thomas Rowland and Dania Alsagoff.
“Complex transactions like this one sit in the sweet spot of our commercial M&A expertise and pull in our relevant subject matter experts from across the firm,” said Pollard. “The outcome of a deal like this is designed to deliver improved network speed and bandwidth to customers around Aotearoa and create efficiencies in terms of asset sharing between telecommunications participants.”
Mobile tower companies like Connexa have emerged as part of a global trend in telecommunications infrastructure management. The separation of tower networks from mobile network operators has opened an asset for infrastructure investors, providing value for mobile network operators to finance high speed 5G technology in response to growing consumer demand for greater bandwidth.
With the 2degrees tower sale, Simpson Grierson has marked its third major telco M&A transaction in two years. The firm previously advised Voyage Digital regarding the $1.58 billion merger of 2degrees and Orcon, plus Macquarie Asset Management on the New Zealand aspects of its joint venture with Real Assets and Aware Super, and the subsequent acquisition of Vocus Group for AU$3.5 billion.
The transaction is subject the approval of the Overseas Investment Office and the Commerce Commission. Connexa was advised by Chapman Tripp and Allens. On the side of 2degrees, Simpson Grierson was assisted by Gilbert + Tobin.
