Infratil pays $160m for majority stake in Console Connect
Jul 10, 2023 | Posted by Abdul-Rahman Oladimeji
Infratil has acquired a dominant stake in the network provider and interconnection company Console Connect. This week, the company announced that it had finalized an interim contract with HKT to acquire 80% of Console Connect for $160 million.
As part of a strategic partnership with HKT, the two companies plan to invest up to $295 million in Console Connect over two years to accelerate growth through marketing, R&D, and new subsea cable investments. The investment will be funded by available capital and existing bank facilities, according to Infratil. The transaction is expected to close in the third quarter of 2024.
Console Connect was founded in 2011 and maintains a Tier 1 global IP network spanning 738,000 km of fiber. It has a capacity of 67 cable systems and 135 POPs. According to reports, the corporation handles roughly 17% of all Internet traffic. PCCW owns HKT (also known as Hong Kong Telecom). 2017 saw the acquisition of Console Connect by PCCW Global and HKT Trust.
Infratil, an investment corporation owned by Morrison & Co., has previously invested in One NZ (previously Vodafone NZ), Kao Data, CDC Data Centers, and Fore Freedom, a Dutch fiber company.
Infratil's financial advisor was Bank Street, and its legal counsel was Herbert Smith Freehills. HKT's financial advisor was Moelis, and its legal counsel was Gibson Dunn.