Electricity distributors WEL Networks (WEL) and Waipa Networks have agreed to sell New Zealand fibre provider Ultrafast Fibre to First State Investments (FSI). The Australian asset management company will purchase WEL’s 85% majority shareholding and Waipa’s 15% stake for NZD854 million (USD513.8 million), of which a consideration of NZD200 million payable to WEL is deferred for 18 months from completion. The deal is subject to approval from the Overseas Investment Office.
Established in 2010, Ultrafast Fibre owns and operates the fibre network in the urban areas of Hamilton, Tauranga, Whanganui, New Plymouth, Tokoroa, Hawera, Cambridge and Te Awamutu, providing access to ultra-fast broadband for more than 237,000 premises.
FSI Infrastructure Investments Director Gavin Kerr commented: ‘We look forward to supporting the strong fibre uptake the business has achieved in New Zealand’s highest growth region and continuing to provide high-quality fibre infrastructure services to the community. The business will remain headquartered in Hamilton and we will be working with the existing management team who have done a great job building the network from the beginning of the fibre network rollout in New Zealand under supervision of Crown Infrastructure Partners.’