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Spark New Zealand Limited ( (AU:SPK) ) has shared an announcement.
Spark New Zealand has completed the sale of a 75% stake in its data centre business to private equity firm Pacific Equity Partners, valuing the business at up to $705 million and crystallising an FY25 pro-forma EBITDA multiple of 30.8x. The assets and operations have been transferred to a new stand-alone entity, TenPeaks Data Centres, in which Spark retains a 25% shareholding and board representation, positioning it as both a strategic partner and anchor customer while providing a funding pathway for a planned 130MW-plus capacity expansion. Spark has received initial cash proceeds of $453 million, with the potential for up to approximately $98 million in additional deferred payments tied to performance targets through 2027, and will use the proceeds to reduce group net debt, strengthening its balance sheet as TenPeaks aims to rapidly scale to meet New Zealand’s growing data storage needs.
More about Spark New Zealand Limited
Spark New Zealand is a major New Zealand telecommunications and digital services provider that has developed a substantial data centre business, operating over 23MW of capacity across 11 facilities nationwide. The company serves as both an infrastructure operator and a key customer in New Zealand’s digital ecosystem, supporting the country’s growing demand for data storage and cloud-related services.
Average Trading Volume: 980,107
Technical Sentiment Signal: Sell
Current Market Cap: A$3.69B
See more insights into SPK stock on TipRanks’ Stock Analysis page.