Spark New Zealand buys remaining 50% of Connect 8

Company News

by David Chau

New Zealand’s largest telco provider, Spark New Zealand Ltd (ASX:SPK), currently owns 50% of Connect 8, which is a fibre optic network construction contractor. The other half is owned by Vocus Communications, Spark’s partner in the Connect 8 joint venture.

Spark has today announced it will acquire the 50% that it doesn’t already own from Vocus for an unspecified amount.

Spark says, the joint venture was formed in February 2015 to provide additional fibre construction so that the growing demand from NZ businesses and consumers for digital services could be met.

Mark Beder, Spark’s chief operating officer, says that full ownership of Connect 8 will give his company more “flexibility, capacity, and control” over the construction and delivery of its fibre network.

Spark New Zealand posted a net profit of $352.8 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.