Brookfield Sells Its 49.95% One New Zealand Stake To Infratil For $1.1B

Brookfield Asset Management Ltd BAM has agreed to sell its 49.95% stake in One New Zealand to Infratil Limited IFUUF for NZ$1.8 billion ($1.1 billion)

This transaction will raise Infratil's ownership in One NZ from 49.95% to 99.90%. Infratil plans to fund the acquisition via an NZ$850 million equity raising, cash reserves, and debt facilities.

One NZ is a New Zealand digital services and connectivity company with 2.7 million connections and a population coverage of more than 98% of New Zealand.

The acquisition values One NZ at an enterprise value of NZ$5.9 billion, an implied EV/EBITDA multiple of 9.8x2 for Infratil's increased stake, and a normalized EV/EBITDA multiple of 9.3x3.

Also Read: Brookfield Asset Management Missed Expectations In Q1 Despite Strong Fundraising

"While we continue to see further long-term value in One NZ, we were attracted to realising a strong return now. We wish Infratil and the One NZ management team the best for what will be a bright future," commented Udhay Mathialagan, Brookfield Managing Director and Global CEO of Data Centres and outgoing chair of One NZ.

Price Action: BAM shares closed higher by 1.58% at $32.18 on Tuesday.