Connexa Limited
Case number(s)
Decision date

Consent granted
Section 13(1)(c) Overseas Investment Act 2005
Section 13(1)(a) Overseas Investment Act 2005
Section 20A(1) Overseas Investment Act 2005

Decision maker Toitū Te Whenua Land Information New Zealand
Decision date 7 June 2023
Pathway(s) Significant business assets National Interest assessment
Investment An overseas investment in significant business assets, involving the Applicant’s acquisition of 100% of the passive mobile network infrastructure assets and associated property rights of Two Degrees Networks Limited and Two Degrees Mobile Limited. In addition, the acquisition by 1000243587 Ontario Limited of additional equity securities in FrodoCo Holdings Limited (indirect owner of the Applicant).
Consideration $1,051,000,000

Connexa Limited
Canada (70%)
New Zealand (8.85%)
United States of America (7.35%)
Various (13.8%)

Vendor Two Degrees Networks Limited and Two Degrees Mobile Limited
Australia (51%)
South Korea (12%)
Canada (7%)
Netherlands (7%)
Germany (6%)
Cayman Islands (5%)
Various (14%)

The Applicant is an independent mobile towers and infrastructure business which procures mobile network infrastructure assets and sells long term access rights to mobile network operators.

Consent has been granted to the Applicant to acquire 100% of the Vendor’s passive mobile network infrastructure assets. The active mobile network infrastructure assets, used to conduct cellular mobile networks, will continue to be owned and operated by the Vendor.

As part of the funding arrangements for this acquisition, 1000243587 Ontario Limited (an overseas person) has been granted consent to increase its shareholding in FrodoCo Holdings Limited (an upstream owner of the Applicant) from 70% to approximately 83% (beyond the 75% control interest threshold).

The decision was subject to a national interest assessment as the Applicant is a non-New Zealand government investor. This is because a relevant government investor from Canada will have a more than 25% control interest in sensitive assets in New Zealand. In addition, the assets that were acquired are used in carrying on a ‘strategically important business’, being a business that is involved in telecommunications infrastructure.

The Decision Maker granted consent as they considered the Applicant has met the investor test criterion and the Minister of Finance has not declined consent to the investment for being contrary to New Zealand’s national interest.

More information

Roger Wallis
Chapman Tripp
PO Box 2206