Several infrastructure fund-owned telcos are considering bidding on Vector’s fibre network sale, five sources said.

La Caisse and Ontario Teachers’ Pension Plan (OTPP)-owned Connexa; Northleaf, InfraRed and Infratil-owned Fortysouth; and One NZ-owned EonFibre, also owned by Morrison-managed Infratil, are among the parties which have assessed the asset, the sources told Infralogic.

It is not certain how many bids will land, three sources said, with one noting the deal size is less than AUD 200m (USD 128.4m).

Auckland, New Zealand-based Vector told the New Zealand exchange in May that Barrenjoey was advising on the strategic review of its fibre assets.

Vector Fibre builds and manages data network solutions mainly for Auckland businesses.

NZX-listed Vector is the country’s largest electricity and gas distributor. It sold a 50% stake in its electricity metering business to QIC in 2023.

In July 2024 it agreed to sell its liquefied petroleum gas (LPG) business, Vector Ongas, and its 60% stake in Liquigas Limited for NZD 150m (USD 87m).

Vector completed the sale in January to Elgas Limited, according to a New Zealand exchange announcement.

The strategic review comes as New Zealand telcos consider recycling assets to raise funds and pay down debt, three of the sources said.

Other New Zealand fibre businesses include Macquarie Asset Management and Aware Super-owned Vocus New Zealand and L1 capital’s Chorus Limited.

Chorus’ fibre broadband expansion was prioritised by the New Zealand Infrastructure Commission’s draft National Infrastructure Plan for further investment or investigation.

New Zealand’s competition and fair-trading body Commerce Commission said in March it would review its fibre broadband regulatory regime including deregulation.

Vector will present its FY25 results on Monday.

A Vector spokesperson said via email that it does not comment on speculation and will update the market as and when required under listing rules.

La Caisse, Northleaf, Pacific Equity Partners and One NZ declined to comment. Fortysouth, Barrenjoey, Connexa, Morrison, Infratil and InfraRed did not respond to requests for comment.