Electricity distributors WEL Networks and Waipa Networks have agreed to sell their shares in UFF Holdings, the holding company for New Zealand operator Ultrafast Fibre (UFF). First State Investments (FSI) has agreed to purchase WEL’s 85 percent majority shareholding and Waipa’s 15 percent shareholding for NZD 854 million, of which a consideration of NZD 200 million payable to WEL is deferred for 18 months from completion.
The UFF business will remain headquartered in Hamilton, and FIS plans to work with the existing UFF management team. Launched in 2010, Ultrafast Fibre owns and operates a fibre network covering the urban areas of Hamilton, Tauranga, Whanganui, New Plymouth, Tokoroa, Hawera, Cambridge and Te Awamutu, providing broadband access for more than 237,000 premises.
The transaction is subject to Overseas Investment Act consent and change of control approvals.
