Spark NZ acquires remainder of Connect 8 from Vocus

Market Release - 1 December 2016 Spark New Zealand acquires remainder of Connect 8 from Vocus Communications Spark New Zealand has announced today it is acquiring the remaining 50% of the Connect 8 fibre construction business from its joint venture partner Vocus Communications. The joint venture was originally formed in February 2015, to provide additional fibre construction and delivery capability to meet the rapidly growing demand from businesses and consumers in New Zealand for digital services. Today's move provides Spark with continued capability for its ongoing fibre replacement programme and for expansion of its Optical Transport Network (OTN). It is also supportive of the Spark strategy to establish a CBD 'owned' fibre position in key markets such as Wellington and Auckland. Chief Operating Officer for Spark, Mark Beder, says Connect 8 has proven capability in the market and the move strengthens Spark's ability to help New Zealand businesses navigate a digital future in which fibre will become increasingly important. "Spark already connects cities, exchanges and data centres around New Zealand to fibre. Given our extensive existing fibre footprint and our goals to be the market leader in data and digital services, full ownership of Connect 8 makes strategic sense. It gives us even more flexibility, capacity, and control over our fibre construction and delivery." Under the agreement, Spark New Zealand will acquire the 50% Vocus Communications share of Connect 8. Connect 8 will continue to construct fibre and telecommunications assets for telecommunication providers in New Zealand. - ENDS - For media queries, please contact: Richard Llewellyn Head of Corporate Communications +64 (0) 27 523 2362 For investor relations queries, please contact: Dean Werder GM Finance & Performance +64 (0) 27 259 7176 End CA:00293632 For:SPK Type:GENERAL Time:2016-12-01 10:57:37