New Zealand Govt Explores Chorus Sale to Fund Capital Projects
The New Zealand Government is contemplating a significant move in the telecommunications sector. It is exploring the potential sale of its stake in Chorus, the country's largest telecommunications infrastructure company. This decision comes after the completion of the ultra-fast broadband fibre initiative, with Finance Minister Nicola Willis stating that there is no longer a policy reason for the Crown to own Chorus.
The Government has tasked National Infrastructure Funding and Financing, or NIFFCo, to investigate the feasibility of selling its debt and equity securities in Chorus. Infrastructure Minister Chris Bishop has asked NIFFCo to look into the possibility of selling these securities to private investors in early 2026. Advice on this potential sale will reach the NIFFCo board and shareholding ministers by the end of this year.
Potential buyers could include strategic telecommunications investors, infrastructure-focused investment funds, and possibly other European or Australasian telecom operators seeking expansion or consolidation. However, specific institutional or individual buyers are not publicly detailed at this stage.
The sale, if approved by ministers and meeting value-for-money expectations, could free up funds for other capital projects such as hospitals, schools, and roads. ACT finance spokesperson Todd Stephenson supports this consideration, calling it a 'long-overdue step' towards smarter management of Crown assets. However, Labour leader Chris Hipkins criticized the move, accusing the Government of selling off assets to prop up finances. The final decision on the sale remains pending.
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