Spark New Zealand, the country's biggest telecommunications company, agreed to buy the remaining half share of fibre construction business Connect 8 from its joint venture partner Vocus Communications for an undisclosed sum.
The joint venture was formed in February 2015 to boost fibre construction and delivery to meet growing demand for digital services from businesses and consumers. Buying out its partner enables Spark to continue its fibre replacement programme and the expansion of its optical transport network and supports its plan to establish its own fibre in key urban markets such as Wellington and Auckland, the Auckland-based company said in a statement.
"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," Spark chief operating officer Mark Beder said. "It gives us even more flexibility, capacity, and control over our fibre construction and delivery."
Spark declined to disclose the purchase price, saying it wasn't material.
The company's shares slid 1.5 per cent to $3.58, and have gained 11 per cent this year. ASX-listed Vocus last traded at A$4.17, having shed 44 per cent this year.