Market Release - 1 December 2016
Spark New Zealand acquires remainder of Connect 8 from Vocus Communications
Spark New Zealand has announced today it is acquiring the remaining 50% of
the Connect 8 fibre construction business from its joint venture partner
Vocus Communications.
The joint venture was originally formed in February 2015, to provide
additional fibre construction and delivery capability to meet the rapidly
growing demand from businesses and consumers in New Zealand for digital
services.
Today''s move provides Spark with continued capability for its ongoing fibre
replacement programme and for expansion of its Optical Transport Network
(OTN). It is also supportive of the Spark strategy to establish a CBD ''owned''
fibre position in key markets such as Wellington and Auckland.
Chief Operating Officer for Spark, Mark Beder, says Connect 8 has proven
capability in the market and the move strengthens Spark''s ability to help New
Zealand businesses navigate a digital future in which fibre will become
increasingly important.
"Spark already connects cities, exchanges and data centres around New Zealand
to fibre. Given our extensive existing fibre footprint and our goals to be
the market leader in data and digital services, full ownership of Connect 8
makes strategic sense. It gives us even more flexibility, capacity, and
control over our fibre construction and delivery."
Under the agreement, Spark New Zealand will acquire the 50% Vocus
Communications share of Connect 8.
Connect 8 will continue to construct fibre and telecommunications assets for
telecommunication providers in New Zealand.
- ENDS -
For media queries, please contact:
Richard Llewellyn
Head of Corporate Communications +64 (0) 27 523 2362
For investor relations queries, please contact:
Dean Werder
GM Finance & Performance +64 (0) 27 259 7176
End CA:00293632 For:SPK Type:GENERAL Time:2016-12-01 10:57:37