Spark to divest 50% share of subsidiary Connect 8

Spark New Zealand Limited
ARBN 050 611 277 Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand
MARKET RELEASE
4 May 2018

Spark to divest 50% share of subsidiary Connect 8
Spark announced today that it has signed a conditional agreement to sell 50% of the
shares in its subsidiary Connect 8 to electricity distribution company Electra Group.
The transaction will also see Connect 8 take full ownership of Electra subsidiary Sky
Communications – a telecommunications contractor providing design, build and
supply of wireless networks for all of New Zealand’s major mobile network owners.
Connect 8 was originally formed in February 2015 as a 50/50 joint venture between
Spark and Vocus Communications, to provide additional fibre construction and
delivery capability across New Zealand.
Spark subsequently acquired Vocus Communications’ share of the company in
December 2016 to make Connect 8 a wholly-owned Spark subsidiary. Over the past
12-months the business has started to also provide services to adjacent utility
sectors.
Spark Chief Operating Officer Mark Beder says that bringing together the
complementary capabilities of Skycomms and the current Connect 8 business will
improve operational efficiencies and speed to market and provide a solid foundation
for the rollout of future mobile technology – something that is crucial for Spark’s
wireless strategy.
“This is more than simply a divestment – it is about forging a new partnership of
strategic importance for Spark to support our fibre expansion programmes and
growth in mobile capacity” says Mr Beder.
Electra Chief Executive Neil Simmonds says technology is critical to Electra’s core
lines business as smart networks become an important way of lowering costs,
improving reliability and driving a customer centric business.
“Spark has been an important supplier to the Electra Group and also a customer for
Skycomms for a long time. I look forward to extending Electra’s partnership with
such an innovative company as Spark.”
The transaction is expected to complete before the end of May 2018. Connect 8 will
continue to operate as construction contractor for telecommunications and other
utility sectors.

-ENDS-

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