Australia’s Nextgen Group has agreed to sell its network assets to Vocus Communications Ltd. No financial terms were released; Reuters reported, however, the deal was valued at as much as US$640 million. The acquired assets will include Nextgen’s North West Cable system and the planned Australia Singapore Cable. Melbourne-based Nextgen is owned by the Ontario Teachers’ Pension Plan (71 percent) and CIMIC Group Ltd (29 percent). Ontario Teachers’, which acquired the company in June 2013, will retain ownership of the group in partnership with CIMIC following the sale.
Vocus Communications enters conditional sale agreement to buy Nextgen Group’s network businesses
June 29, 2016
Sydney June 2016 – Nextgen Group announced today it had entered into a conditional agreement with Vocus Communications for the sale of the company’s network businesses, including the North West Cable system and the planned Australia Singapore Cable. The proposed sale is subject to ACCC clearance and other customary completion conditions.
The deal includes Nextgen’s 17,000km national fibre network, the almost-completed subsea Port Hedland to Darwin cable and the proposed Perth to Singapore subsea cable. The Group will continue to own its data centre business, Metronode, which operates as a separate entity.
Nextgen Group is owned by the Ontario Teachers’ Pension Plan (71%) and CIMIC Group Limited (29%). Both OTPP and CIMIC Group will retain ownership of the Group after the sale.
Metronode is Australia’s leading, carrier-neutral, energy-efficient data centre provider, with 10 facilities in Perth, Melbourne, Sydney, Wollongong, Canberra, Brisbane and Adelaide.
About Nextgen Group
Nextgen Group is a leading provider of network connectivity and 10 Australian-based data centre facilities – in Canberra, Wollongong, Sydney, Perth, Brisbane, Melbourne and Adelaide – for Australian businesses, government agencies and telecommunications service providers. We deliver innovative and customised solutions to our customers, keeping them at the forefront of technological change. www.nextgengroup.com.au
About OTPP (Ontario Teachers’)
The Ontario Teachers’ Pension Plan (Ontario Teachers’) is Canada’s largest single-profession pension plan, with $171.4 billion in net assets at December 31, 2015. It holds a diverse global portfolio of assets, 80% of which is managed in-house, and has earned an annualized rate of return of 10.3% since the plan’s founding in 1990. Ontario Teachers’ is an independent organization headquartered in Toronto. Its Asia-Pacific region office is located in Hong Kong and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario’s 316,000 active members and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
CIMIC Group Limited (ASX: CIM) is one of the world’s leading international contractors and the world’s largest contract miner. CIMIC Group has operations that have been in existence since 1934, was listed on the Australian Securities Exchange in 1962 and has its head office in Sydney, Australia. CIMIC provides construction, mining, mineral processing, engineering, concessions, and operation and maintenance services to the infrastructure, resources and property markets. It operates in more than 20 countries throughout the Asia Pacific, the Middle East, North America, Sub-Saharan Africa and South America and, as at 31 March 2016, employed approximately 42,000 people directly and through its investments.
For more information, contact:
Louise Di Francesco
+61 418 617 869
Photo courtesy of Vocus Communications Ltd