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HICL Infrastructure PLC said on Monday it exchanged contracts to acquire a 40% equity interest in Aotearoa Towers Ltd, a passive mobile tower infrastructure owner, from Vodafone New Zealand Ltd - a subsidiary of Vodafone Group PLC.
Following the acquisition, Aotearoa will represent around 7% of HICL's portfolio by value. It also expected that Aotearoa will take the portfolio's weighting in digital communications infrastructure to 9%.
HICL said the transaction will create New Zealand's largest independent tower company, with 1,484 wholly-owned towers. Aotearoa will own and operate the passive tower infrastructure and Vodafone NZ will retain the responsibility for the 'active' telecommunications equipment mounted on the towers.
The initial term of the agreement is 20 years, with the option of two 10-year extensions.
The investment will be funded from the proceeds of HICL's recently completed capital raise and existing credit facilities, the company said.
Shares in London-based infrastructure investment firm were up 0.4% at 171.20 pence on Monday morning in London.
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