UK-based InfraRed Capital Partners, part of the Sun Life insurance group, and Canada’s Northleaf Capital Partners will each hold 40 percent, while Vodafone half-owner Infratil will take 20 percent.
Infratil’s CEO Jason Boyes said Vodafone has proven to be a smart and profitable investment.
“We are delighted with this result, which once again underscores why Vodafone is an excellent Infratil investment. We have released a significant portion of the value of our original equity invested in Vodafone, while retaining that investment and a 20 percent stake in Keep TowerCo.”
Vodafone will receive a 20-year right to use the network of 1484 towers and retain ownership of the active assets, such as the mobile phone transmission equipment.
The new tower company will build at least 390 additional sites.
Vodafone said the tower sale would provide money for future investments in hardware and services.
The sale price was equivalent to 33.8 times Vodafone’s operating profit, a similar ratio to Spark’s $900 million sale of a 70 percent stake in its towers last week.
Morrison and Co, which manages Infratil and brokers many of its deals, said taking a 20 percent stake in the company of the new towers gave it an interest in an asset that was difficult to replicate.
“What makes this an attractive Infratil asset is that while it has long-term, inflation-linked cash flows, it is also a platform with significant growth opportunities, including macro-tower growth, capacity for future co-rent, increased demand for new points or presence and to capitalize on opportunities such as small cells,” said Morrison’s chief investment officer Will Smales.
The sale requires approval from the Overseas Investment Office and is expected to be completed by the end of the year.