“In hindsight, the conservative option would have been to hang on to this capital.”

Spark sold its passive celltower assets – land, leases, and physical towers – under the deal, retaining its electronics. Access, upgrades, and new towers were included as part of the package.

Spark’s share of Connexa was watered down to around 17% when Connexa bought 2degrees’ mobile tower infrastructure in a $1.1b deal that closed in June last year.

As part of the agreement announced this morning, the Ontario Teachers’ Pension Plan will also sell 33% of its shareholding to CDPQ. On completion of the transaction Ontario Teachers’ Pension Plan and CDPQ will each hold a 50% co-controlling interest in Connexa, Spark said in an NZX filing.

The telco’s shares are at a decade low, but Craigs’ Wade Gardiner and Morningstar’s Brian Han have both recently said investors have over-reacted to the telco’s setbacks. Gardiner has a $3.60 12-month target on the stock, which he upgraded from neutral to overweight this week. Han sees Spark’s intrinsic value at $4.30.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.