Connexa: Ontario Teachers' Transfers Stake to CDPQ, Establishing Co-Control
Deal News | Dec 11, 2024 | CDPQ
Ontario Teachers' Pension Plan and CDPQ, a global investment group, have announced that CDPQ will acquire a 33% stake in Connexa, a leading mobile tower infrastructure company in New Zealand, from Ontario Teachers and the full 17% stake from Spark New Zealand. This CAD 745 million (NZ 909 million) investment will result in Connexa being co-controlled by Ontario Teachers and CDPQ, each holding a 50% stake, contingent on approval from New Zealand’s Overseas Investment Office. Connexa's foundation in October 2022, following Ontario Teachers’ acquisition of Spark's telecom towers, has led to robust growth and significant expansion of its network. The transaction aims to deliver sustained growth for Connexa, leveraging international expertise and capital to advance its long-term strategy in the digital infrastructure sector.
Sectors
- Telecommunications Infrastructure
- Investment Management
- Private Equity
Geography
- New Zealand – The geographical focus of the article is on Connexa's operations and the regulatory environment for the transaction within New Zealand.
- Canada – Canada is relevant due to the involvement of Ontario Teachers’ Pension Plan and CDPQ, both headquartered in Canada.
Industry
- Telecommunications Infrastructure – The article discusses the acquisition of shares in Connexa, a company specializing in mobile tower infrastructure, highlighting the telecommunications industry's critical role.
- Investment Management – The involvement of Ontario Teachers' Pension Plan and CDPQ in the transaction highlights activities within investment management, focusing on strategic acquisitions and asset growth.
- Private Equity – The deal involves a private equity transaction where CDPQ acquires significant equity stakes, leveraging private investment strategies.
Financials
- CAD 745 million – The total value of the transaction through which CDPQ acquires its stake in Connexa.
- NZ 909 million – Equivalent value of the transaction in New Zealand Dollars.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| CDPQ | Buyer | Company | A global investment group acquiring a 33% stake in Connexa and Spark's 17% stake. |
| Ontario Teachers' Pension Plan | Seller | Company | Previously majority stakeholder in Connexa, selling part of its stake to CDPQ. |
| Connexa | Target | Company | A leading mobile tower infrastructure company in New Zealand, center of the acquisition deal. |
| Spark New Zealand | Other | Company | Sold its entire 17% stake in Connexa to CDPQ as part of the transaction. |