Aug 12 (Reuters) - Spark New Zealand SPK.NZ said on Tuesday it will sell a 75% stake in its data centre business to Australian fund manager Pacific Equity Partners, valuing the business at up to NZ$705 million ($418.63 million).
The telecom company expects to receive approximately NZ$486 million in cash proceeds from the transaction.
The company said that bringing on Pacific Equity as a capital partner will secure funding for planned data centre capacity expansion.
Spark will retain a 25% stake to maintain its presence in New Zealand’s growing market for AI infrastructure.
The data-centre assets and operations will be transferred into a new stand-alone company, provisionally named "DC Co," with its own management team and financing facilities.
Chief Executive Jolie Hodson said DC Co has "advanced plans in place" for a greenfield site on Auckland’s North Shore and for further expansions at the Takanini site in South Auckland.
($1 = 1.6841 New Zealand dollars)