Spark ends torrid year with $181M tower sale

　　Embattled New Zealand telco Spark has sold its remaining stake in mobile tower firm Connexa as it wrestles with a flat business outlook and low stock price. The company announced Thursday it will offload its 17% holding to Canadian asset management firm CDPQ for 314 million New Zealand dollars (US$181 million).

　　As part of the deal CDPQ will also acquire a 33% share of Connexa from the majority owner, Ontario Teachers' Pension Plan. Each will hold a 50% share when the sale completes. Spark said it expects a gain from the transaction of around NZ$70 million ($40.4 million) in earnings before interest depreciation and investment income (EBITDAI).

　　The telco, New Zealand's largest, foreshadowed the tower sell-off in October when it began a review of non-core assets to strengthen its balance sheet. It has had a torrid year, twice cutting earnings guidance and with its stock plummeting 44%.

　　Besides the tepid outlook for telecom services, it's also feeling the sting of the weak national economy, which appears to be in recession after two successive quarters of negative growth.

　　Structural challenges

　　Announcing the lower guidance in October, Chair Justine Smyth said weak business investment and consumer spending would continue to curtail growth and margins. She said the company was revamping its enterprise and government division to tackle "structural segment challenges."

　　She also said that in the next year Spark would focus on "resetting" its core business, reducing its cost base and simplifying its portfolio.

　　Connexa was formed two years ago when it acquired a majority stake in Spark's passive mobile tower assets. It later bought the tower business of rival 2degrees to take its total to more than 2,400 towers.

　　Spark will remain a Connexa customer and will retain control of spectrum and RAN, the company said. It will continue to make all the decisions on how the network is designed and developed.

　　Spark's new CFO, Stewart Taylor – previously CFO at local insurance firm Partners Life – will join the company this week. He replaces outgoing finance director Stefan Knight, who resigned in September.